Final answer:
A single life annuity provides lifetime income to the annuity owner only, not the beneficiary. For couples, a joint and survivor annuity may be more appropriate, as it offers lifetime payouts for both spouses. Retirement income strategies must balance risk and potential return.
Step-by-step explanation:
The question relates to retirement planning, specifically the suitability of a single life option annuity for providing lifelong income to a married couple. A single life annuity generally provides income for the lifetime of only the annuity owner, not the beneficiary.
After the owner's death, payments typically stop, meaning that a single life annuity may not be suitable for a couple looking to provide income for both individuals for their lifetimes.
Strategies to ensure sufficient retirement income include saving in a variety of ways: putting money into savings accounts, investing in property, stocks and shares that pay dividends, and purchasing bonds. However, these methods come with different levels of risk. An alternate and more secure option is an annuity, which provides a fixed regular income post-retirement.
Couples looking for retirement income security might consider other types of annuities that provide lifetime benefits for both the original owner and their spouse, such as a joint and survivor annuity. Here, after the first spouse passes away, the surviving spouse continues to receive payments. Making an informed decision involves weighing the tradeoffs between potential risk levels and rates of return, depending on the couple's needs and risk tolerance.