Originally Posted by bmcgonig
How do you intend to use an SPIA when you're 80 if you don't mind me asking? I.e., what will determine the decision and how much? And what are your thoughts on a longevity annuity that would start at 80/85. The latter is what I was considering as my mother is 95 and kicking. Also, I like that it almost solves the question of how many years should I plan for I.e., up till age 80/85. The big problem with them is that you have to estimate how much you would need by guessing the future inflation rate as they're not cola'd.
I would never consider anything but a SPIA, no VA or deferred annuities for me (a separate debate).
When and if? I monitor my annuitization hurdle quarterly, here's a good summary of the strategy http://www.schulmerichandassoc.com/M...cumulation.pdf
. If markets are favorable in the next 20 years or so, we should never need a SPIA, but it is part of our "plan B."
And annuities are at an all time high WRT cost due to low interest rates/yields. I wouldn't buy one now even if I was 75-85 if I could avoid it. Costs (per income provided) can only go down in the future for practical purposes, though we all realize it may be years or decades before that happens. This aspect has also been debated repeatedly, so others may have a very different POV.