Originally Posted by Independent
when I was deciding to retire I used a "buy an annuity at age 85" option. That is, I figured I didn't really need to plan income all the way to age 100 or whatever. I simply planned income to age 85, with enough assets left to buy an annuity at that point.
I think that's a pretty sound concept. Jonathan Clements recently wrote an article about a similar plan - I'll see if I can dig it up.
Challenges include the fact that at typical FIRE ages, it's a long way to age 85 so just how much to plan on sinking into that age-85 annuity is murky. I calculated it using the typical 3% inflation, 7% nest-egg return, and 70% of my starting expenses, corrected for inflation. At age 85 you get a high return on your annuity money, and it works.
If you die before, your heirs get all the left-overs but you've been able to spend a little more freely in the interim. If you make it to 85, you won't be a burden on them.