Joint and Survivor Annuity
Candlefocus EditorJoint and survivor annuities are generally used by older couples who are near retirement age and want to ensure they have funds to last throughout their retirement years. These annuities are typically purchased with insurance funds, their own savings, or a combination of both, and they pay out according to a predetermined schedule. The payments depend on the type of annuity chosen, the size of the premium, and the contract’s duration.
The advantage of a joint and survivor annuity is that it continues to pay out income to the surviving partner until his or her death. This means that even if one person passes away, the remaining partner can continue to receive regular payments from the annuity. This can be a great comfort for couples late in life, as they no longer worry about providing for each other financially.
At the same time, this product may not be the best choice for younger couples. While they may benefit from the peace of mind offered by a joint and survivor annuity, there are other investments available that may offer greater upside potential and lower fees.
Ultimately, couples should consider what is best for their individual situation. A joint and survivor annuity, if purchased appropriately and at the right time, can provide a great source of security for couples late in life. But other options may offer greater potential returns, and it is important to understand the risks and potential rewards of any investment before buying.