How it works
This values both pension options in today's dollars, including the years your spouse would keep collecting under the joint-life option. It does not judge the personal security of guaranteed survivor income — only the math.
Who this is for
Anyone choosing between a higher single-life pension that stops at their death and a lower joint-and-survivor option that continues paying a spouse afterward — a decision most people only get to make once, at retirement.
Worked example
With the defaults — $2,400 single-life versus $2,000 joint-life, 20 years for you and 8 more for your spouse at 100% survivor and a 5% discount rate — the two options land within a couple thousand dollars of each other in present value. When the math is this close, the decision usually comes down to something the numbers can't fully capture: how much guaranteed income for your spouse is worth to you, independent of the dollar difference.
Frequently asked questions
Why are the options usually close in value? Plans generally design joint-and-survivor options to be roughly actuarially fair, so the real decision is about risk and security, not finding a hidden bargain.
What survivor percentage should I use? Use whatever your plan actually offers — commonly 50%, 75%, or 100% — since a lower percentage changes the joint-life value meaningfully.
Could I take single-life and buy life insurance instead? Some people do — see the pension maximization calculator to compare that strategy directly.