[fintstone]

Originally Posted by ted

My retirement regret is that 16 years ago when I retired I signed up to withhold $300 a month for survivor benefits for my wife.
At the time $300 was the monthly bill for health insurance.
Frick $300 x 12 = $3600 a year.
Retired 16 years so 16 X $3600 = $57,600 in reduced pension so far.

I did not sign up for survivor benefits after my first retirement (military) because I was very young and healthy, term insurance was cheap, my wife was still young and attractive enough that she would likely remarry, and it was likely that I would pay a very long time. I decided to cancel the insurance because I joined the reserves, and they provided insurance. It would be 21 years now (so apparently a good choice).

When I retired the second time, I was quite a bit older and better off (enough in investments to cover my wife's expenses if I were to precede her). That would include the loss of my military retirement and the cost of paying someone to do the things at home that I do. But I took the survivor's benefit this time. It seemed pretty reasonable (all things considered compared with alternatives), and I really did not expect to pay it (the reduction) for a very long time. Hopefully I will be wrong and live a very long tie (and that will be a positive in of itself). We are both waiting for 70 to start SS and 73 to begin RMD from our 401Ks. My wife will hit the age for both ahead of me, but taxes will be a big issue then (as will Medicare) as the cost is based on income...

Unlike insurance, most survivor benefits are pretax deductions and somewhat inflation protected (if your retirement is). It is a pretty good deal unless you retire young.