Are Payouts Affected in a Joint / Survivor Annuity?

Consumers looking for a way to diversify their investment portfolios may opt into annuities to ensure a payout during their golden years. However, the amount of payout you get may be affected by whether you opt into ajoint or survivor annuity.

Annuity Basics

Annuities are an insurance like contract where over a period of time, an investor makes payments to finance the fund. Then in return, at a set date the insurance company that manages the annuity pays back the money on a predetermined schedule. When setting up a annuity, investors can opt into three general options: Single, joint or survivor. If you want to schedule an annuity, your payout will be affect by how you set up your account. The payout degrees are as follows:

  • Single Annuity – the account is set up by one person and the payout goes directly to them until they die
  • Joint Annuity – Two spouses are set up with this type of investment and when one spouse dies, the payouts cease for the survivor
  • Survivor Annuity – Two spouses are set up with this type of investment and when one spouse dies, the survivor will then receive half of the original payout amount

The Right Annuity

Choosing the proper type of annuity for your retirement needs can be extremely confusing. The ultimate goal is to get the best payout amount from your annuity for your money, and excluding single accounts, that amount can fluctuate based on the death of your spouse. It is impossible to predict when you or your spouse will pass away, so choosing the best annuity may require the help of a annuity expert. You may also want to look into life insurance as a way of diversifying your retirement strategy.