However, if you consent in writing, your husband can waive the QJSA and elect instead to receive a single-life annuity
. With a single-life annuity
, payments are made over your husband's lifetime but stop upon his death.
Some of the most common options are: lump sum, single-life annuity
, 100% joint survivor, 50% joint survivor and/or options with pop-up provisions.
Here's an example we encountered: The single-life annuity
income option offered $3,000 per month to the retiree, while the 100 percent joint-and-survivor option offered $2,400 per month.
As well as not getting the best pension income, one of the biggest mistakes many people make is to opt for a single-life annuity
, which means the pension stops immediately upon their death, leaving loved ones without an income.
Consider things such as the risk of leaving loved ones struggling if you opt for a single-life annuity
that stops upon the death of the holder, compared to receiving a slightly lower income with a joint-life that continues to pay out.
With a single-life annuity
, for instance, "you feel like a loser from the day you bought it.
The amount necessary to purchase (or receive as a life insurance settlement option) a no-refund single-life annuity
can be estimated by using a conservatively long value for life expectancy together with conservative values for the other assumed variables.
Traditional defined benefit plans also offer a period-certain option--sometimes called a period-certain and continuous option--which is similar to a single-life annuity
in that it guarantees the employee a monthly benefit for life.
A 60-year-old man buying a single-life annuity
from Standard Life with a pounds 100,000 fund would get a pounds 7,584 a year pension.
If the missing participant is a living missing participant, the form typically is a QJSA (for unmarried participants, a single-life annuity
Typically, retirees choose a single-life annuity
, which is normally the form of payment that yields the highest payable benefit.
A single-life annuity
, with part of the increased benefit used to purchase life insurance, may significantly increase retirement income while still protecting the spouse.