Annuity Options

When increases in age, the subject of people’s disagreements over time. When my husband, Dave, and I were newlyweds, the first argument we had was what to have for dinner during at the hotel restaurant during our honeymoon. Then the arguments evolved into what to name our first child, and then on to what type of house we should buy and how we should pay for it, etc.. this time, Greg and I have been arguing and deliberating on pension annuities — whether or not to apply for an Open Market Option or not, though I believe this is more deliberating than arguing, given the seriousness of the subject.

We have talked to professional advisers and even asked for second opinions, and we finally decided that we would have to ultimately decide whether an open market option would be most favorable for us or not. One advantage of this option is that our pension increases over time. The disadvantage is that there is no absolute guarantee that we would live long enough to enjoy the full benefits of this type of arrangement. Another disadvantage to this is that the starting income we would get would be lower compared to other pension annuity arrangements.

Dave is for the open market option. Regarding the issue of low starting income, he insisted we could use our savings. But we’ve decided earlier (years ago, actually) to use these finances for a new vacation home. Oh well.