Q & A: Maximizing Your Pension
Q: My pension plan offers several payout options, which one should I take?
A: It depends. You have to take into consideration the options made available to you in light of your circumstances such as your marital status, your retirement goals and other retirement income sources you may have.
Q: My pension plan offers a Joint and Survivor Annuity or Single Life Annuity option, what’s the difference?
A: As the name suggests, a Joint and Survivor Annuity is intended to continue to provide a payout to a surviving spouse. Single Life Annuities have a higher monthly payout but payments cease when the owner dies. It’s important to discuss details with your personal retirement distribution professional or other advisor to make sure you fully understand the payout options that are available to you.
Q: My pension plan offers a Joint and Survivor Annuity option, is that going to be the best choice since I am married?
A: It could be the best option but it may not necessarily be the best. Depending on your situation, even though you are married you may be able to maximize your pension by electing a Single Life Annuity option and using some of your funds to incorporate life insurance into your retirement income strategy. However, it is very important to discuss these matters with your personal qualified advisors to help make appropriate choices for your individual situation.