Don’t Overlook This One Thing in Retirement Planning: Survivor Income

Survivor Income – When planning for retirement, most people focus on one thing—ensuring a steady stream of income once the paychecks stop. That’s a smart move. After all, when you retire, your employer paychecks end, and you have to create your own. Whether it’s through Social Security, pension, or retirement savings, the goal is to build a reliable, monthly paycheck for life.

But there’s one crucial area many people overlook: Survivor Income.

What Is Survivor Income?

Survivor income is the money your spouse or partner will continue to receive after you pass away. It’s not just about your retirement—it’s about making sure your loved one is financially secure if you’re no longer around. And unfortunately, this part of the plan is often ignored until it’s too late.

Why Survivor Income Matters

You might have your retirement plan all laid out. The numbers look good, your income streams are aligned, and your expenses are covered. But what happens if one person in the couple passes away?

Even if both partners have their own retirement plans or split finances, there are shared responsibilities and expenses—like rent, utilities, groceries, and healthcare. Losing one income source can drastically change what’s affordable.

Here’s the reality:

• When one spouse dies, the smaller Social Security benefit disappears.
• If a pension or retirement benefit was chosen for a single life, that income may vanish entirely.
• Assets that aren’t jointly owned or designated to the survivor are not accessible. (This is a common issue with life partners who hold assets individually) 

Real-Life Example: A Wake-Up Call

We once worked with a retired couple who thought everything was perfectly in order. Their income seemed solid, and their lifestyle was comfortable. But when we reviewed their retirement plan in detail, we found that over 75% of their income was tied to the husband’s pension—and it was only guaranteed for his lifetime.

If he passed away first, his wife would have been left with almost nothing.

The good news? We caught it in time. By restructuring their plan, we were able to guarantee income for both of them, without reducing their current payouts. It turned a potential financial disaster into long-term security.

How to Plan for Survivor Income

Whether you’re married or in a long-term partnership, it’s critical to ask the right questions now, not later:

• Are both incomes protected in the event one person passes away?
• What happens to Social Security and pensions?
• Will the surviving partner have enough to maintain the same lifestyle?
• Are assets structured for survivorship? 

Even if you and your partner manage finances separately, planning for each other shows responsibility and care. Ignoring survivor income isn’t just a financial risk—it’s a disservice to someone you love.

Final Thoughts: Don’t Fall Into the Survivor Income Trap

Planning for retirement is more than just calculating your own paycheck. It’s about making sure that your financial legacy continues, even after you’re gone. Don’t leave your spouse or partner grieving and scrambling to cover bills.

Talk to a retirement planner, review your income sources, and make sure survivor income is built into your plan. Because the best retirement plans don’t just take care of you—they take care of the people you care about most.

Need help building a reliable, lifetime retirement income plan—for both you and your partner? Contact us today for a free consultation.