On the "Alive" sheet of my Longevity Estimator Excel workbook, using the 1980 SSA Cohort Life Table for both spouses, the survival-weighted amounts for option 2 produce a 5.4% return versus the lump sum, while the ones for option 3 produce a 4.7% return. (I'm assuming option 3 has the same 50% survivor benefit as option 2.)Here's my info: Age 41 M (spouse age 42 F)
I was given three options for the pension:
- lump sum offer: $26,150
- Monthly benefit at age 65: $672 (50% spouse survivor benefit)
- Monthly benefit starting now at age 41: $119.50
Code:
Cell Item Value F3 Table - Pers 1 Cohort1980 F4 Table - Pers 2 Cohort1980 H3 Sex - Pers 1 M H4 Sex - Pers 2 F I3 Age Years - Pers 1 41 I4 Age Years - Pers 2 42 I5 Years - Delay 24 <=== starts in 24 years O1 Amount - Pers 1 only 672.00 O2 Amount - Pers 2 only 336.00 O3 Amount - Both Alive 672.00 O4 Discount Rate - Joint 5.418% <=== option 2 return O5 Present Value - Joint 26,150Code:
Cell Item Value F3 Table - Pers 1 Cohort1980 F4 Table - Pers 2 Cohort1980 H3 Sex - Pers 1 M H4 Sex - Pers 2 F I3 Age Years - Pers 1 41 I4 Age Years - Pers 2 42 I5 Years - Delay 0 <=== starts right away O1 Amount - Pers 1 only 119.50 O2 Amount - Pers 2 only 59.75 O3 Amount - Both Alive 119.50 O4 Discount Rate - Joint 4.742% <=== option 3 return O5 Present Value - Joint 26,150Statistics: Posted by #Cruncher — Mon May 13, 2024 4:38 pm — Replies 12 — Views 889