Pension Maximization	Send this page to a friend

Retirement Options (and Survivor Benefits)

Many pension plans (various state teacher retirement systems, Civil Service and Federal Employees, and many unions) provide excellent retirement income. Their benefits are calculated using current, state-of-the-art methods and assumptions.

And yet, they may come up short when you seek to accommodate larger personal financial interests--interests which may vary over two or three or more decades of retirement!

The Options that retiree's most frequently select include:

	Maximum Income -- provides the highest monthly payment to the retiree only;
	100% Joint & Survivor -- equal payment to the retiree and spouse as long as either lives;
	75% and 50% Survivor Options -- 75% or 50% of the reduced pension to the surviving spouse.

To provide ongoing retirement income to your spouse (in the event of your death), you must accept a reduced income during your lifetime. This cost, the reduction of pension income for as long as you live, may be an expensive way to provide a survivor benefit on your death. This cost increases with each Cost-of-Living Allowance, and offers no opportunity for recovery. If your spouse predeceases you, the loss is completely forfeited from years of reduced pension.