# Retirement benefit options



## jman123 (Jan 28, 2015)

Greetings,

My soon to be 65 year old wife will be able to start collecting a retirement pension from work starting January 1,2020. 

They have offered the following retirement options :

A. Guaranteed 120 months - $261.62 
B. Guaranteed 60 months - $265.45
C. Guaranteed 180 months - $255.98

For the above options the amount on death of pensioner the amount would be $0.

D. Guaranteed 120 months with 60% continuing to be payable to the Surviving Spouse - $251.33 . 
So, payable from January 1,2030 I would receive 60% or $150.80 per month for life if my spouse predeceases me. 

My wife has good genes, father lived almost to 93 years old, mother still alive at 91 years. Me (now 66 years old), not so good, father passed away at 62 years old, mother at 84 years old.

I am leaning to Option D. 

I know it's not a lot of money and that $250 or $260 per month is not going to make that much of a difference in my lifestyle but would like your opinion.

Thank you.


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## Longtimeago (Aug 8, 2018)

D would appear to be the most sensible option.


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## OptsyEagle (Nov 29, 2009)

Assuming they did not offer "no guaranteed amount", then D is the right one.


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## ian (Jun 18, 2016)

It is essentially declining value term insurance. If you decide that you want, take a median number and compare it with the best term insurance rates that you could get. 

That is what I did. The amounts were larger. The program was better than term for me, but not by that much. The rate might be different for a female.


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## jman123 (Jan 28, 2015)

Thanks for your replies/advice. I think we will go for option D. That way, at least one of us will continue to get the pension until we're both gone


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## Retiredguy (Jul 24, 2013)

jman123 said:


> Greetings,
> 
> My soon to be 65 year old wife will be able to start collecting a retirement pension from work starting January 1,2020.
> 
> ...


If your wife takes C (15 yr guarantee) she has that pension for her life. If she dies after one month of receiving pension I think you will find that the remaining 179 months of pension would be paid to her beneficiary/estate. Presuming you would be her named beneficiary you would have a pension for the remaining 179 months to age 81 (as you are 66 now). That is the point of having a specified guarantee period. Upon her death if any of the guarantee period is remaining the pension plan may decide to payout the remaining months as a lump sum. If you believe she will live long and you get shorted because of health/genes C might be the way to go. Yes if wife has passed and then you live past 81 the pension would stop.


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