Q. I’m a 71-year-old DAC who will be retiring in June 2019. Presently, I have $1,045,000 in the TSP. When I retire, I will have the following other sources of annual income: military retirement ~$37,000 annual (w/SBP option); Social Security ~$29,000; FERS annuity $29,000 (s/100% option, which is half); and my TSP (wife is beneficiary). My wife is 55 years old retired DAC with an annual annuity of ~$14,000. She also have $450,000 in her TSP account. She will be receiving at age 56 a Social Security supplement of ~$9,000 until the age of 62.
With the differences in my wife and I ages, would it be wise to convert my TSP to an annuity upon retirement with 100 percent to my wife? If something happened to me, this would give her a guaranteed amount of ~$53,000 annually. This would be in addition to the military SBP, SSN, her annuity and her TSP.
A. All I can tell is that this is the lowest-risk option, and the benchmark against which any alternatives should be compared.
