joint life annuity

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Joint Life Annuity

An annuity that two persons, almost always a married couple, open in order to provide for both in retirement. A joint life annuity makes payments to the designated party as long as one of the spouses remains alive. Depending on the nature of the agreement, the amount in the payments may decrease when the first spouse passes away. It is also called a joint and survivor annuity.

joint life annuity

See joint and survivor annuity.
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Cash balance plans also were more likely than traditional plans to provide different choices for joint and survivor benefits: upwards of nine-tenths of the workers in cash balance plans were given a choice of different joint and survivor annuities, compared with seven-tenths in traditional plans.
Distribution of retirement income benefits: lump sums have become more popular as an alternative to annuity payments in defined benefit retirement plans and remain the prevalent distribution option in defined contribution plans. (Distribution of Retirement Income)
Valuing joint and survivor annuities also requires recognition of the potentially important interactions between the members of a married couple, such as joint consumption, interdependent utilities, and correlated mortality rates.
More generally, the load factors on joint and survivor annuities calculated in MPWB (1999) ranged between 7 and 21 percent.
JOINT LIFE ANNUITIES AND ANNUITY DEMAND BY MARRIED COUPLES

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