Your pension's survivor election determines whether your spouse keeps receiving income. Here's how the main options compare.
What are the main survivor benefit options?
Most pensions offer a choice between a single-life annuity and a joint-and-survivor annuity. A single-life annuity pays the highest monthly amount but stops entirely when you die, leaving your spouse with nothing from the pension. A joint-and-survivor annuity pays a smaller monthly amount in exchange for continuing payments to your surviving spouse—commonly 50%, 75%, or 100% of your benefit. The larger the survivor percentage, the lower your monthly payment while you're both alive. Federal law generally requires spousal consent to waive a survivor benefit on a qualified plan, because the choice has lifelong consequences for the surviving partner's financial security.
How do I choose the right option?
Consider your spouse's own income, age, and health, plus how much the survivor election reduces your monthly check. If your spouse has little independent income, a joint-and-survivor option can prevent a financial cliff when you pass. Also weigh other protections—life insurance or savings—that could replace lost pension income. Remember that survivor income also helps cover ongoing costs like Medicare premiums and a Medigap plan for your spouse. Coordinating these decisions matters: a surviving spouse on a fixed income needs predictable healthcare costs. Call 1-800-MEDIGAP (1-800-633-4427) for free help ensuring your spouse's Medicare coverage is secure.