My husband, 59, is retired and we need to choose one of several options from his union pension: straight life; life with 5,10, or 15 yr guarantees; joint with 60%,67%,75%, or 100% survivor and then there are the options with Canada Pension supplement whereby we get ~$500/mo more now and ~$260/mo less pension after 65. We also have life insurance: $200G on him; $100G on me. We also have some investment income and I will likely continue to work part time for at least the next 3 yrs. How do we choose which pension option to go with?
As others have suggested, there are so many variables you should probably consult a financial planner for advice. But some of-the cuff thoughts:
You have indicated you will have very little pension of your own.
a) So you should probably be looking at one of the joint survivor options. The percentage you need requires an analysis of all the likely income streams for each survivor.
b) life with 5,10, or 15 yr guarantees will reduce your pension payments to pay for the guarantee. So long as you have a survivor benefit on the pension, why do you need the guarantee? You have life insurance and other investments to cover the needs of your estate(s), and even pass something to your beneficiaries if you both die in the same accident. (Unless you are still heavily mortgaged?)
c) The CPP supplement needs further explanation. What is the hidden cost to exercising this option? You need to look at your cash flow needs to decide on this.
d) Is the insurance paid-up, declining term, and/or are you continuing to pay premiums for it? Most people do not need insurance after retirement, other than for estate planning reasons.