What is a joint and survivor annuity in a pension plan?

A joint and survivor annuity is a specific type of benefit offered by pension plans that provides a monthly income for the lifetime of the participant (often the employee) and, after their death, continues to pay a portion of that benefit to a surviving spouse or another designated beneficiary for their lifetime. This provision is particularly relevant for married individuals, as it ensures that both partners will have financial security throughout retirement. By mandating this option, pension plans address the need for retirement income protection for surviving spouses, which is vital in providing economic stability following the death of the primary earner.

The other options do not accurately describe a joint and survivor annuity. It is not an investment strategy or a life insurance policy, nor does it relate to social security benefits. Each of those responses represents different financial tools or calculations and does not embody the primary characteristics of joint and survivor annuities in a pension context.