Pension maximization (pension max) = strategy where retiree takes **single-life annuity** (higher payment) + buys **life insurance** to protect spouse, instead of choosing **joint-and-survivor annuity** (lower payment). **2025 example**: $4,000/mo single-life vs $3,200/mo joint-survivor (80% survivor benefit) = $800/mo difference.

Use $500/mo to buy $500k term life insurance → net gain $300/mo during retirement + spouse gets insurance payout at death. **When it makes sense**: **(1) Healthy retiree**: Under 65, non-smoker, good health → cheap life insurance ($400-600/mo for $500k).

If premiums <$800/mo difference = profit. **(2) Large age gap**: Retiree 65, spouse 55 → single-life pays for 20+ years, insurance covers spouse's longer life expectancy. **(3) High survivor benefit reduction**: Pension offers only 50% survivor → $4,000 single vs $3,000 joint (50% → $2,000 survivor) = $1,000/mo savings, enough for life insurance + extra income. **(4) Estate goals**: Life insurance death benefit ($500k) > pension continuation ($2,000/mo × 20yr = $480k), plus kids inherit insurance proceeds tax-free. **When NOT to use**: (a) Poor health/uninsurable → can't get affordable life insurance. (b) Spouse has own retirement income (SS + 401k) → survivor benefit less critical. (c) Insurance too expensive → $900/mo premium eats all $800 difference. (d) Guaranteed period pension (20yr certain) → already provides survivor protection. **Break-even**: If retiree lives 15+ years, pension max wins (extra $300/mo × 180mo = $54k + insurance).

If dies early, insurance replaces lost pension income.