Which Pension Payout Option Should You Take?
September 26, 2019
If you’re one of the lucky people who own a pension, you may have noticed that it before you start receiving the payments, it will offer different payout amounts. Normally, if you are married, benefits have to be paid in the form of a “qualified joint and survivor annuity”. This annuity pays a certain dollar amount to you during your lifetime, usually monthly, with at least 50% of that amount continuing to your surviving spouse after you pass.
People who want to maximize their monthly retirement income are often tempted to choose the higher-paying single-life annuity for exactly this reason, but many of them are also concerned about providing for their spouses after they die. So how do you solve this problem? One way to potentially do that is through what’s called a “Pension Maximization” technique.
