Single Life vs. Joint and Survivor Pension Payout Options

Research Report

Single Life vs. Joint and Survivor Pension Payout Options

How Do Married Retirees Choose?

Abstract

Retirees in traditional pension plans must generally choose between single life annuities, which provide regular payments until death, and joint and survivor annuities, which pay less each month but continue to make payments to the spouse after the death of the retired worker. This study examines the payout decision by married pensioners. The results indicate that 28 percent of married men and 69 percent of married women decline survivor protection. Men whose spouses have pension coverage from their own employers and men with small pensions and limited household wealth are more likely than other men to reject survivor protection.

Research Area: 

Cross-Center Initiative

Cross-Center Initiative: 
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