Why would George and his wife select a single life annuity distribution option from his retirement plan?

Selecting a single life annuity distribution option allows George and his wife to receive the highest periodic payments available from his retirement plan. This option is particularly advantageous for individuals who prioritize immediate and maximum income over other considerations, such as the potential for leftover benefits or post-death payouts. Since George and his wife may not need to provide for beneficiaries after his death, choosing this option means they can capitalize on the entirety of the annuity's value during their lifetimes, maximizing their funds available for living expenses and lifestyle choices in retirement.

This choice emphasizes a focus on immediate financial needs and eliminates concerns about leaving any remaining benefits to heirs. As such, the single life annuity aligns well with their desire for a higher income now, rather than a residual benefit that may not be necessary later. This approach suits individuals who feel confident about their long-term needs and prioritize having more available cash flow in the present.