If you have a pension, deciding how to take it can be one of the more important retirement decisions you make.
Typically, you may have a choice between taking a larger monthly payment for your life only, or taking a smaller payment that continues to your spouse if you pass away first.
That may sound like a simple pension decision, but there can be a little more to it.
In this video, I walk through a sample case of a couple deciding between a single life pension and a 100% survivor pension option.
The decision affects more than the monthly pension check today. It can also affect what the surviving spouse would have to live on, when Social Security should start, how much may need to come from the investment portfolio, and where tax planning opportunities may exist before Social Security and required minimum distributions begin.
The right answer is not always the survivor option, and it is not always the larger check.
The right answer depends on how the pension fits with the rest of the retirement plan.
If you are approaching retirement and need to make a pension election, this video will help you think through what should be considered before making a decision.