Pension Maximization

What Does Pension Maximization Mean?

Pension maximization refers to a strategy in which a couple purchases a single annuity instead of two separate or a joint annuity. The death benefit is then used to purchase another annuity for the surviving spouse.

Insuranceopedia Explains Pension Maximization

The objective of pension maximization is to secure a significantly larger monthly payout after retirement. The annuity should be large enough to fund a life insurance policy, which will be used to purchase another annuity for the surviving spouse.