How to calculate the breakeven point in my retirement plan options?
If I am offered a choice of an annuity, 50% and all survival or income level at the age of 62 or income until age 65, how to calculate the breakeven point for each of the options?
Interesting question … by the breakpoint I am assuming you mean you will pay more over your life? If that's the case, you have to do several questions. With annuities, your spouse is older or younger than you, and have their own source of retirement funds? I'm not sure there's an answer, because unfortunately, nobody knows how long they will live. Your payments will be based on actuarial tables, but are based on the statistics, which tell how many people die at the age that gives certain variables, but do not tell who will die. I do not think you can calculate a "breakeven".
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