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222 Don’t Make Me Say I Told You So

► Income for an annuity with a “life-only” payment

You need to decide if the possible loss of income from the

sources above will have a significant negative effect on the
survivor. If so, you must come up with a plan to provide another

source of income or funds to fill that void. Some ways that you
can protect those left behind from this possible loss of income

are:

► Take pensions with a “joint and survivor” option, which

pays a lower amount each month, but will continue
payments to the survivor listed on the pension payment.

For instance, a “joint and 100%” option will pay a
monthly income for the length of time chosen for that

payment. If the person receiving the pension passes
away, the survivor would continue to receive a monthly

payment equal to 100% of the amount being received.
For a “joint and 75%” option, the survivor receives 75%

of the amount being received. A “joint and 50%” option
would pay half, and so on.

► Just like the pension, if you have an annuity that will pay
monthly payments for life or for a specified time period,
consider a “joint and survivor” option for that payment

as well, if it’s available.

Chapter 5: Things That Can Wreck Your Retirement