Rational Decumulation - Annuity to the Rescue

[chinaco]

I think this study, along with the one walkinwood identified, show approaches to using annuities as part of the overall strategy of funding retirement. They propose a hybrid approach that leverages the unique strengths of each.

The interesting part of the study that caught my eye was the statement that an annuity can give the equivalent income using 25 - 40% less money.

 

[W2R]

Just because some people will live past 100, doesn't mean you have the same chance. The long lived may benefit but they are likely the ones buying it anyway so it is likely between the long lived and the very long lived. Are your genes and behavior up to it?

In answer to your question... in my case, I believe the answer is yes.

I am not going to put a gun to my head if I happen to survive into my 90's. I am going to plan for that turn of events, so that I don't have to. That's the only approach that makes sense to me.