Based on age criteria only, which co-annuitants listed below would receive the largest monthly benefit payments in a joint and survivor annuity?

In a joint and survivor annuity, the monthly benefit payments are generally based on the age of the annuitants at the time the contract is initiated. The reasoning behind this is tied to life expectancy; older annuitants typically have shorter life expectancies compared to younger ones. Therefore, the financial institution providing the annuity anticipates paying out benefits over a potentially shorter period for older individuals.

In this case, the co-annuitants who are ages 71 and 73 would receive the largest monthly benefit payments because they are the oldest pair presented in the options. Consequently, the calculation for their monthly payments takes into account the lower life expectancy expected for individuals in their seventies as compared to those in their sixties or eighties.

While it may seem counterintuitive that older ages correlate to higher monthly payouts, this is due to the structured nature of annuity payouts which are derived from the life expectancy expected of the annuitants. The younger pairs, such as those aged 60 and 62, while being eligible for lower payments due to their longer anticipated lifespan, could ultimately result in lower payouts than the older demographic. Hence, choosing the option consisting of the 71 and 73-year-olds is logically aligned with the mechanics of