Retiree’s annuity choice would halve wife’s income to $605
A 62-year-old retiree was about to pick the wrong payout on his employer annuity, which would have cut his wife’s income roughly in half to $605 a month after his death.
The retiree was considering a 50% survivor annuity, which would have eliminated one Social Security check upon his death.
Suze Orman recommended an IRA rollover, projecting the $200,000 would grow to $300,000 in 8 years, with the full balance passing to his wife, who is 8 years younger and likely to outlive him.