Once you have decided over which type of annuity you want to choose, the next choice you will have to make is whether you should choose a single-life annuity or a joint-life annuity. A single-life annuity is an annuity that pays you an income until you die. However if you are married and die before your partner, under this type of annuity they could end up short of money, as payments cease when you pass away.
An alternative is a joint life annuity. This will pay a part or all of your annuity payments to your partner, after you have passed away. The amount of your annuity income that is paid after your death varies between 50% to and 67%. There is of course some conditions associated with a joint-life annuity. One of these is that the initial rates are lower. The bigger the amount of your income you choose to be paid after you die, the smaller your initial income will be. Also if your partner is younger than you, your pension provider will provide a lower rate as they will expect to have to pay out for longer.
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