Handling Survivorship on Income Sources

Many income sources change in amount or availability upon the death of one spouse. Many pensions and annuities adjust down or go away entirely upon one spouse’s death. If you are planning for a joint household with income sources such as these, be sure to fill in these fields carefully to accurately factor in any changes due to survivorship.

Here are some examples:

(1) Aaron and Beth have an annuity of $1000/month with 50% survivor benefit

• Amount: $1000
• Amount available after the death of Aaron: $500
• Amount available after the death of Beth: $500

(2) Aaron has a pension of $1000/month that reduces to 75% upon his death

• Amount: $1000
• Amount available after the death of Aaron: $750
• Amount available after the death of Beth: $1000

(3) Aaron has a pension of $1000/month that stops at his death

• Choose "Ends at Aaron's death" as the End Date Option for this cash flow. This will automatically make "Amount available after the death of Aaron" $0.