To fully understand pension maximization, you first need to know the difference between a single-life annuity and a joint-and-survivor annuity. 

A single-life annuity means you will receive payments for the rest of your life. In contrast, a joint-and-survivor annuity permits you and your spouse to receive monthly income payments for as long as you live. Pension maximization can be challenging, so let's break it down into four steps:

Step 1: The plan participant buys enough life insurance to substitute some of the survivor benefits the spouse would have obtained under a joint-life annuity. 

Step 2: Upon retirement, the plan participant picks the single-life annuity option.

Step 3: If the plan participant passes first, the insurance company pays a tax-free death benefit to the surviving spouse.

Step 4: The surviving spouse can use the death benefit to replace all the pension income lost when the plan participant passes by purchasing a fixed annuity or investing the returns.

This strategy offers couples several advantages.

The pair receives the maximum benefit they can enjoy together for the rest of their lives.

And as long as they purchase enough coverage, the spouse will continue to live at the same economic level as she has before her spouse's passing.

Both the couple and the single spouse will maximize their income.

With the purchase of a permanent life insurance policy, normally a guaranteed universal life, the couple benefits from this policy.

1. They can take out loans against it.
2. The cash value will accumulate.
3. And they will also have the additional income from the annual dividends, considering they are paid.

And if the retiree should pass, the spouse has immediate funds available from the life insurance benefit to pay expenditures and debts while substituting the nest egg for future retirement funds.