flintnational
Thinks s/he gets paid by the post
I know we have covered this before, but it seems each situation is different. Yesterday in the mail I received a lump sum pension offer.
Historically, my company did not offer a lump sum pension choice. I had planned to take the annuity at age 63. I am currently 57. Here are the rough numbers (they sent some of the numbers, but I have estimated other numbers - so this may change).
One time lump sum offer $405k (may not be available in the future)
Annuity option - Non Cola
At current age 57 the annual annuity is $23,500 with joint 100% to survivor
DW is also 57
Considerations - If I don't start it now, the annuity grows at about 8% per year until age 63, full retirement age, and does not increase after that date.
If I die before I elect the annuity, planned age 63 election, the DW only receives a 50% survivor benefit. But, I feel pretty healthy today!
What would you do? Take the lump sum or the annuity. If you prefer the annuity, would you start it now to lock in the 100% survivor benefit option, or let the annuity grow at 8% till age 63. If I wait, I run the risk of the DW only receiving 50% if I die before I elect the annuity. I had not noticed the 50% automatic survivor benefit until I read the plan docs with the lump sum offer.
Thanks all,
FN
Historically, my company did not offer a lump sum pension choice. I had planned to take the annuity at age 63. I am currently 57. Here are the rough numbers (they sent some of the numbers, but I have estimated other numbers - so this may change).
One time lump sum offer $405k (may not be available in the future)
Annuity option - Non Cola
At current age 57 the annual annuity is $23,500 with joint 100% to survivor
DW is also 57
Considerations - If I don't start it now, the annuity grows at about 8% per year until age 63, full retirement age, and does not increase after that date.
If I die before I elect the annuity, planned age 63 election, the DW only receives a 50% survivor benefit. But, I feel pretty healthy today!
What would you do? Take the lump sum or the annuity. If you prefer the annuity, would you start it now to lock in the 100% survivor benefit option, or let the annuity grow at 8% till age 63. If I wait, I run the risk of the DW only receiving 50% if I die before I elect the annuity. I had not noticed the 50% automatic survivor benefit until I read the plan docs with the lump sum offer.
Thanks all,
FN
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