A joint annuity
will continue to pay some money to your partner after your death.
yia tin pe yo There are lots of different types of pension annuities, such as di f f pensio a joint annuity
, which would mean a percentage of your pension will continue to be paid to your surviving spouse or civil partner after you die.
Further, for our data set, we observe the joint annuity contract if both annuitants are alive at the beginning of the observation period or if the annuitants enter the study during the observation period.
Because of the preponderance of data in the third category, we focus our attention on male-female joint annuity mortality.
It has two drawbacks, first, it is a contract for life, so once signed there is no going back; second, when you die the insurance company can keep the rest of your pension pot, whether you live for two or 20 years (unless a joint annuity
is taken out - see below).
The first describes the structure of joint annuity
products and develops expressions for actuarially fair joint-life annuity products.
A joint annuity
is practical because it is virtually maintenance free.
Among the most popular are 1) a life annuity, where payments continue for the rest of the retiree's life, and no payments continue to survivors after the retiree's death; 2) a survivor joint annuity
, where payments continue while both annuitant and spouse are living (a reduced payment is made to the spouse for life when the annuitant dies); and 3) life and N certain: payments are guaranteed to the annuitant for life, but if death occurs before N years (usually 10), the remainder of the N years of payments are made to a named beneficiary.
The law creating the TSP requires that five basic types of annuities be available to participants: two forms of single life annuities, two forms of joint with spouse annuities, and a joint annuity
with a survivor other than a spouse.
Yet the difference in income for those who opt for a joint annuity
- which means pension payments continue to be paid to a partner in the event of the pension-holder's death - can be pretty small.
So when the time comes to buy an annuity, it is important that the partner with the big pension pot takes out a joint annuity
If that retiree wanted a guaranteed sum, or to see their pension rise in line with inflation, or to have a joint annuity
so if they died their spouse would receive an income, then the weekly figure drops considerably.