[quote=“ObamaNOT, post:2, topic:37420”]
If they don’t need it right away, I would think your Mom should take the full amount and just bank it. If they need it later, they can draw on what they’ve banked.
But if they bank it and your Mom passes away, then your Dad can draw on what they’ve banked.
Actuarially, it’s probably more likely that your Dad will pass before your Mom. So if they want to play the odds, it may be more prudent for your Mom to take the full amount so she’ll continue to get that instead of just half perpetually.
Of course, this path may deprive your Dad of getting some of it if your Mom passes first. But I would be inclined to play the odds when planning, and him surviving her is unlikely. Another consideration may be whether or not he would absolutely need it to survive. As you’ve drawn it though, it seems as though he will have some other sources of income that may suffice.
There’s another consideration, and while it probably would not come to pass, it’s possible.
And that’s the solvency of the Boeing pension plan . . . there’s the possibility that it will go belly-up. Unlikely but possible.
As I recall, there’s some government agency that oversees pension plans and “guarantees” them. But I’ve also seen several articles that claim pensions are woefully underfunded. And counting on a “government guarantee”, especially considering that the economy is in the tank and also the current group of Chicago thugs running things, I’m not so sure that I would plan based on a “government guarantee”.
So if the scenario is that the pension may not be there someday, that also argues that perhaps it’s more prudent to take the full amount while it’s still available.
For these reasons, banking it, the actuarial probabilities, and the possibility of the pension completely disappearing or substantially reduced, I think I’d opt to take the full amount if I were in their shoes.
[/quote]The last few years I have read about businesses to government bodies which have decided to underfund pensions deliberately and then try to weasel out of them later. This is happening in Illinois now but the point is some companies resort to getting rid of pensions by changing the rules or being bought out and the new owner denying any liability for the pensions.
Then there is Obama and while some think that pensions are untouchable, never underestimate the rapaciousness of the government to confiscate those plans.