Joint and Survivor
A joint and survivor payout on a SPIA or DIA pays as long as either of two annuitants (typically spouses) is alive. The survivor percentage — 50%, 75%, or 100% — determines what fraction of the original payment continues after the first annuitant dies. A joint and 100% survivor payout maintains the full payment until the second death. A joint and 50% survivor payout cuts the payment in half after the first death. The monthly payment is lower than a single-life payout because the carrier expects to pay for a longer total period.
A 65-year-old husband and 63-year-old wife purchase a $200,000 SPIA. Single-life payout on the husband: $1,210 per month, ends at his death. Single-life payout on the wife: $1,100 per month (lower because of longer female life expectancy), ends at her death. Joint and 100% survivor: $1,020 per month, continues at $1,020 per month until the second of the two dies. Joint and 50% survivor: $1,120 per month while both alive, $560 per month after first death.
Why it matters
For married couples or households where two people share retirement income, the joint and survivor payout protects the survivor from a sudden income loss at the first death. Selecting a single-life payout on shared retirement money is one of the most common and most damaging annuity-purchase errors. The lower monthly payment under joint and survivor is the cost of the survivor protection.
How to evaluate
For married couples without other guaranteed lifetime income, joint and 100% survivor is the default starting point. Joint and 50% or 75% are used when the surviving spouse will have lower expenses (e.g., the survivor benefits from Social Security spousal continuation that fills part of the income gap). Single-life is rarely appropriate for shared retirement money.
In the contract
Look for "joint and survivor," "joint annuitant," "survivor percentage," and "payout type." The contract specifies the second annuitant by name and the survivor percentage.
Related terms
Researching an annuity? A licensed specialist who has already screened the carriers and contracts can walk you through the trade-offs in plain English.
AnnuityMatchPro is not a carrier, an advisor, or an agency. We connect retirees to a licensed specialist for a free, no-obligation conversation. Cancel anytime, no follow-up if you don't want it.