Joint And Survivor Annuities: The Annuity For Couples.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Explore Your Couples Annuity Options

When planning for retirement, it’s crucial to understand the various annuity options available to ensure financial security for both you and your spouse. Among the most popular choices are Joint and Survivor Annuities and the Joint Life Payout option on a Guaranteed Lifetime Withdrawal Benefit (GLWB). Both options offer unique benefits tailored to your financial goals and needs.

What Is A Joint And Survivor Annuity?

A joint and survivor annuity is an insurance product designed specifically for retired couples seeking a reliable and guaranteed monthly income that will continue as long as either spouse lives. Unlike a single-life annuity, which ceases payments upon the annuitant’s death, this annuity ensures that the surviving spouse continues to receive income. The main advantage of this type of annuity is the assurance that your spouse will continue to receive income after your death, making it a popular choice for retirement income planning.

Key Features of Joint and Survivor Annuities:

  • Lifetime Income: Payments are guaranteed for the life of both annuitants.
  • Continuity: Payments continue to the survivor upon the death of one annuitant.
  • Flexibility in Payment: You can choose the percentage of the benefit that continues to the surviving spouse.
  • Tax Advantages: Part of each payment can be considered a return of principal, potentially reducing tax liabilities.
  • Age-Based Payouts: Payouts are based on the youngest spouse’s age, which can affect payment amount and duration.

Joint Life Payout On A Guaranteed Lifetime Withdrawal Benefit Annuity

A joint life payout with GLWB is an alternative to traditional annuitization found in joint and survivor annuities. GLWB stands for Guaranteed Lifetime Withdrawal Benefit, an add-on to variable annuities or fixed-indexed annuities. It allows you to withdraw a certain percentage of your annuity’s value each year, guaranteed for life.

Key Features of Joint Life Payout on a GLWB:

  • Withdrawal Flexibility: You can withdraw a set percentage of the annuity’s value each year.
  • Market Participation: Opportunity to earn interest in the underlying investments with protection against market loss.
  • Continuation for Surviving Spouse: Payments remain constant and continue for the life of the surviving spouse.
  • No Annuitization: By not annuitizing, you retain control over your money.

How We Can Help

At The Annuity Expert, we understand that securing your financial future can be overwhelming. With 15 years of experience as an insurance agency, annuity broker, and retirement planner, we specialize in helping couples find the best annuity solutions at the lowest costs.

We believe in offering personalized advice tailored to your unique needs and preferences. We stand for providing financial security and peace of mind, ensuring that your retirement years are spent enjoying life rather than worrying about finances.

Our core mission is to help you achieve a secure and comfortable retirement by guiding you through the complexities of annuities and ensuring you make informed decisions. We understand the emotional stress that comes with financial planning, and we’re here to alleviate that burden.

Joint And Survivor Annuities

What We Recommend

Step 1: Initial Consultation

  • What Happens: We’ll start with a free consultation to understand your financial goals and retirement needs.
  • Main Benefit: You’ll receive personalized advice tailored to your unique situation.

Step 2: Annuity Selection

  • What Happens: Based on your goals, we’ll recommend the best annuity options for you and explain each’s benefits and potential drawbacks.
  • Main Benefit: You’ll gain a clear understanding of your options, empowering you to make an informed decision.

Step 3: Implementation

  • What Happens: We’ll assist you in purchasing the chosen annuity, ensuring all paperwork is completed accurately and efficiently.
  • Main Benefit: You’ll have peace of mind knowing that your financial future is secure.

Features and Benefits:

  • Personalized Advice: Tailored recommendations based on your unique needs.
  • Expert Guidance: Over 15 years of experience in the annuity market.
  • Comprehensive Support: Assistance throughout the entire process, from selection to implementation.

Addressing Common Objections:

  • High Fees: We ensure that the benefits of the selected annuity outweigh the costs.
  • Complexity: We simplify the process, making it easy to understand.
  • Commitment: Our personalized approach ensures you are comfortable with your decision.

Without expert guidance, you risk choosing an unsuitable annuity, potentially jeopardizing your financial security. You may also miss out on better options with lower costs.

By working with us, you will experience confidence and peace of mind, knowing your retirement is secure. Our clients enjoy financial stability and the assurance that their loved ones are cared for. Feel the relief of having a secure retirement plan in place. Contact us today for free advice or a quote.

Joint And Survivor Annuities Vs. Joint Life Payout On A Glwb

Joint And Survivor Annuity And Joint Life Payout Guidance

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Frequently Asked Questions

What is the difference between a joint life payout and a joint and survivor annuity?

They both provide income for the duration of both spouses’ lives. Joint and survivor annuities can be 100 pay, 50 pay, or 75 pay. These determine how much the surviving spouse receives. In a joint life payout, the amount stays constant. You also have the ability to earn interest on your funds and retain liquidity by not annuitizing.

What is a 50% joint and survivor annuity?

A 50% joint and survivor annuity is an insurance policy that pays out an income to two people, typically a married couple, during their retirement. The payments continue until both individuals have passed away. The payments will be reduced by 50% when the first spouse dies.

What is a 100% joint and survivor annuity?

A 100% joint and survivor annuity is an insurance policy that pays out an income to two people, typically a married couple, during their retirement. The payments continue until both individuals have passed away. The payments will not be reduced when the first spouse dies.

What is a 75% joint and survivor annuity?

A 75% joint and survivor annuity is an insurance policy that pays out an income to two people, typically a married couple, during their retirement. The payments continue until both individuals have passed away. The payments will be reduced by 25% when the first spouse dies.

What is a survivor annuity benefit?

A survivor annuity benefit is a financial provision ensuring continued annuity payments to a designated beneficiary, usually a spouse, after the death of the annuitant.

What is a waiver of joint and survivor annuity?

A waiver of joint and survivor annuity is a formal relinquishment of the right to receive a joint and survivor annuity, typically chosen by spouses in favor of alternative benefit options.

Are joint and survivor annuities offered in employer-sponsored plans?

Yes, joint and survivor annuities are often offered as the default option for couples married at the time of retirement in employer-sponsored qualified plans.

What is a QJSA?

A Qualified Joint and Survivor Annuity (QJSA) is a type of retirement payout option typically found in company pension plans. It provides a lifetime income to the retiree, and after their death, it continues to provide a percentage of the original amount to the surviving spouse. The percentage depends on the pension plan’s terms, but it’s commonly 50% to 100% of the original payment. This ensures that the spouse receives financial support after the retiree’s death.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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