[quote=briansd1]…You forgot about survivor benefits. The wife will likely live to 80… [/quote]
Uh….”survivor benefits,” known as SBP are cheap for minor children (abt 2% of the monthly pension for one or more children). Of course, they will eventually turn 18, at which time their SBP will terminate (unsure if a FT college student under age 23 can collect it). For a spouse they are VERY expensive and thus are not taken out by all married soon-to-be military retirees. SBP must be elected PRIOR to retirement. IIRC, the spouse SBP deduction is roughly about 18% of the monthly pension amount. Thus, the sponsor is actually paying in these high monthly “premiums” to ensure their spouse receives 50% for life of their monthly retirement at the time of their deaths. If the spouse predeceases the sponsor, these premiums are forfeited.
Correct me if I have any of this wrong, Always studying or Allan from Fallbrook.
