What does a Joint and Survivor Annuity pay?

A Joint and Survivor Annuity is designed to provide income for two individuals, typically a retiree and their spouse. The primary feature of this type of annuity is that it guarantees payments throughout the lives of both individuals. This means that as long as either the retiree or their spouse is alive, payments will continue to be made. This arrangement offers financial security, ensuring that the surviving spouse will still receive income even after the death of the retiree.

This structure is particularly valuable for planning retirement income, as it protects against the risk of outliving one’s resources, which is a significant concern for many retirees. In contrast, other types of annuities may only focus on the individual retiree or provide lump sums, lacking the dual benefit of coverage for both members of a couple. The Joint and Survivor Annuity offers peace of mind and a steady income stream that extends beyond the lifespan of the original annuitant.