Joint-Life Payout

DEFINITION of 'Joint-Life Payout'

One of two options normally available for retirees to choose as the method of payout for their employee retirement benefits. The joint-life payout option allows the retiree to receive benefits during the remainder of his/her life and guarantees income for another person after he/she has died, most often this other person is the retiree's spouse. Unless the retiree's statements explicitly states the joint-life payout, the default payout option is the single-life option.

BREAKING DOWN 'Joint-Life Payout'

In contrast, a single-life option will pay out benefits to a retiree starting at retirement, but the payouts cease upon the retiree's death. Choosing a payout option is an important decision and several factors should be taken into consideration, such as health, anticipated life expectancy and family's financial circumstances.

RELATED TERMS
  1. Payout

    The expected financial return from an investment over a given ...
  2. Payout Ratio

    Payout ratio is the proportion of earnings paid out as dividends ...
  3. Lifetime Payout Annuity

    A type of insurance product that pays out a portion of the underlying ...
  4. Sequence Risk

    The risk of receiving lower or negative returns early in a period ...
  5. Target Payout Ratio

    A target payout ratio is a measure of what size a company's dividends ...
  6. Digital Option

    An option whose payout is fixed after the underlying stock exceeds ...
Related Articles
  1. Retirement

    The Pros And Cons Of Pension Maximization

    Pension maximization can be an effective solution to the single versus joint life payout dilemma that many retirees face. But, there are several factors, such as tax and investment matters, that ...
  2. Options & Futures

    Selecting The Payout On Your Annuity

    Make sure you understand your options for withdrawing your funds from this complex instrument.
  3. Retirement

    3 Safer Income-Oriented Asset Classes for Retirees in 2016

    Learn why the chase for safe retirement income will continue in 2016 with market yields remaining low, even with the Fed's first tightening move in many years.
  4. Bonds & Fixed Income

    6 Ways Retirees Can Capitalize on Higher Rates

    A interest rate increase still looks to be on the horizon, so retirees should begin rethinking the way they currently invest.
  5. Retirement

    Asset Distributions A Key Consideration For Retirees

    How you distribute qualified retirement plan money can affect your taxes and Social Security benefits.
  6. Investing News

    How Retirees Should Think About Market Corrections

    Stock market corrections can be scary for retirees living off their investment income. Panic isn't an option. Retirees can take steps to cushion the blow.
  7. Retirement

    The Top 3 Retiree Worries (And What To Do About Them)

    Discover the most common problems retirees face, and what they can do to solve them.
  8. Financial Advisors

    Real Estate Advice for Recent Retirees

    What retirees need to consider when it come to making real estate decisions.
  9. Retirement

    These Are the Top Jobs for Retirees (SBUX)

    Learn some of the best jobs available for retirees who want to stay busy. These include retail, driving, call center work and tutoring.
  10. Your Clients

    Top 5 Retirement Mistakes and How to Avoid Them

    Retirement planning becomes extra important in the final stretch, with many common mistakes becoming very costly. Here are some tips to avoid any problems.
RELATED FAQS
  1. How do I calculate dividend payout ratio from a balance sheet?

    Understand what the dividend payout ratio indicates and learn how it can be calculated using the figures from a company's ... Read Answer >>
  2. For what types of investments is the payout ratio the most relevant?

    Find out about the payout ratio, what the payout ratio measures and the type of investment that the payout ratio is used ... Read Answer >>
  3. Are dividend payout ratios different in different economic sectors?

    Discover which economic sectors have traditionally higher or lower dividend payout ratios and the various factors that determine ... Read Answer >>
  4. What does a sample plan using the 4% retirement rule look like?

    Discover how the 4% retirement rule can work as part of a plan to achieve increasing retirement income if investments perform ... Read Answer >>
  5. What are some possible red flags in a company's dividend payout ratio?

    Read about how investors and analysts use the dividend payout ratio to scrutinize the sustainability of a company's dividend ... Read Answer >>
  6. What causes dividends per share to increase?

    Learn what the major factors are that can lead to changes in a company's dividend payouts and drive increases in dividends ... Read Answer >>
Hot Definitions
  1. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  2. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  3. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  4. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  5. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  6. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
Trading Center