We finally (a week late) got the specifics on my husband's pension. He is being offered the opportunity to choose: 1. take lump sum now, 2. take monthly payments now, or 3. do nothing and receive pension benefits at age 65 (he's 47 now).

Here's their offer:

1. lump sum: 35,000
2. monthly payments now: 170
3. pension benefits at 65: 670

Choices #2 and 3 are based on a single life annuity. We don't see the upside of choosing single life, since I am dependent on his income/savings. So those numbers would be lower with a 50, 75, or 100% joint and survivor annuity. On their web site, the calculator says a 100% j/s annuity payment at age 65 would be $500 a month.

The PPA interest rates they used are -1.2, -3.6, and -4.5% on the 5 years, 6-20 years, and the 21+ years respectively. (Not sure what this means, but I have a general idea.)

Soooo...I am surprised at the lump sum amount. It seems maybe they are expecting someone to only live about 5 years after age 65. (I know the math isn't straight-forward when they figure these things.)

I am assuming our retirement living expenses will be similar to our current expenses, about $3000 a month. Our retirement savings right now is $180k.

Any opinions on what the best choice would be, given these specifics?

(Thanks again for all the input on the previous thread! I will be noodling all of this in the days/weeks ahead.)