I'm retiring soon and I will soon start to receive pension benefits. Should I elect a joint and survivor annuity or a single life annuity?

First, you must always make sure that you understand the difference between the two. With a single life annuity, you will receive pension benefits for life, and they will stop once you die. With a joint survivor annuity, you will receive benefits that are reduced for life, and then once you die, your spouse receives "survivor' benefits. These benefits are a certain percentage of the benefits you received prior to death. Choosing between these options can sometimes be easier than you think. Since the survivor annuity is specifically designed to provide for a spouse who will be surviving. Usually, being single, is not recommended for a survivor annuity.

If you are married, you don't have to elect a single life annuity unless your spouse agrees to waive the joint and survivor annuity. You should also keep in mind that a single life annuity makes distributions only when you die. It won't provide benefits for your surviving spouse. Even when your spouse decides to waive his or her right to a joint and survivor annuity, then the survivor and joint option might still be the better choice if you want to be absolutely certain that your spouse will be taken care of after you die.

The joint and survivor can be the best option if your spouse will be entitled to other benefits such as health insurance. It might not be a hassle if the joint and survivor annuity will pay you smaller benefits during your life (with other sources of income). Don't forget that no matter what you choose, you have to decide on your individual circumstances. Don't pick an annuity, not knowing what each one's benefits will be. The best way to decide on which annuity to pick is to speak with your life insurance agent and negotiate on what will be the better option based on your particular needs. Until you have talked with a professional advisor, it is not recommended for you to get either one of those annuities.