Pension Plan Retirement Option for Sam Pull
Choosing a Joint Survivor Benefit costs you $502 per month.
The cost of the Joint Survivor Benefit option is the difference between the pension payment for the single annuitant and the pension payment for the Joint Survivor benefit. In your case, this cost is $502. You may be able to apply this cost to a life insurance plan that can provide similar financial resources to your spouse instead of choosing the Joint Survivor Benefits.
At age 83, which was your estimated life expectancy, you would require $85,585 earning 6.00% per year to replace your pension benefits. This would provide $1,498 per month in today’s dollars to your spouse through age 85. If you died during your first year of retirement at age 67, you would need $206,036 earning 6.00% per year to replace your survivor benefit.
Results Summary
- Your current age: 50
- Your spouse’s age: 50
- Your age at retirement: 67
- Your spouse’s age at retirement: 67
- Your life expectancy: 83
- Your spouse’s life expectancy: 85
- Single pension at retirement: $2,000 per month
- Joint pension at retirement: $1,498 per month
- Indexed for COLA 3.50%: Yes
- Joint Survivor Pension Cost: $502 per month
- Lump sum required if you die during your first year of retirement: $206,036
The cost of life insurance for this amount is estimated at $172 per month ($10.00 per $1,000 per year)
- Lump sum required if you die at age 83: $85,585
The cost of life insurance for this amount is estimated at $71 per month ($10.00 per $1,000 per year)
- Future value of savings: $279,379 based on a annual rate of return of 6.00%
- Break even age: You must live to age 67
Retirement requirements by age of spouse at your death
| Your Age | Spouse’s Age | Single Annuitant Payment | Joint Survivor Payment | Lump Sum Required to Replace Pension | Savings Over Time at 6.0% | Monthly Cost Joint Survivor Pension |
|---|---|---|---|---|---|---|
| 67 | 67 | $2,000 | $1,498 | $206,036 | $4,088 | $502 |
| 68 | 68 | $2,070 | $1,550 | $206,931 | $8,869 | $520 |
| 69 | 69 | $2,142 | $1,605 | $207,244 | $14,384 | $538 |
| 70 | 70 | $2,217 | $1,661 | $206,894 | $20,839 | $557 |
| 71 | 71 | $2,295 | $1,719 | $205,795 | $28,283 | $576 |
| 72 | 72 | $2,375 | $1,779 | $203,846 | $36,825 | $596 |
| 73 | 73 | $2,459 | $1,841 | $200,941 | $46,796 | $617 |
| 74 | 74 | $2,545 | $1,906 | $196,960 | $58,194 | $639 |
| 75 | 75 | $2,634 | $1,973 | $191,770 | $71,317 | $661 |
| 76 | 76 | $2,726 | $2,042 | $185,225 | $86,559 | $684 |
| 77 | 77 | $2,821 | $2,113 | $177,163 | $103,872 | $708 |
| 78 | 78 | $2,920 | $2,187 | $167,407 | $123,893 | $733 |
| 79 | 79 | $3,022 | $2,264 | $155,760 | $147,009 | $759 |
| 80 | 80 | $3,128 | $2,343 | $142,006 | $173,650 | $785 |
| 81 | 81 | $3,237 | $2,425 | $125,905 | $204,003 | $813 |
| 82 | 82 | $3,351 | $2,510 | $107,195 | $239,139 | $841 |
| 83 | 83 | $3,468 | $2,598 | $85,585 | $279,379 | $870 |
| 84 | 84 | $3,589 | $2,688 | $60,757 | $325,364 | $901 |
| 85 | 85 | $3,715 | $2,783 | $32,357 | $378,635 | $932 |
Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.