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Old 04-21-2020, 06:35 AM   #81
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Originally Posted by ncbill View Post

And it doesn't take hyperinflation to ruin the returns of a SPIA especially for someone buying them while in their 60s...IIRC there's no COLA SPIAs currently available.
To clarify:

There are COLA SPIAs that increase from 1%-5% per year.

There are no CPI linked SPIAs being sold right now that increase according to CPI.
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Old 04-21-2020, 07:41 AM   #82
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Originally Posted by LRDave View Post
I want to point out again that the OP was asking about TIAA Traditional Lifetime annuity and the annual monthly payments to the annuitants have gone up 16 of the last 25 years. This not COLAd, but it can get bigger and won't get smaller. Also I have looked many, many times at the quote from the TIAA site compared to immediateannuities.com and the TIAA initial quote (for us) is always higher.

While we can annuitize through TIAA, I am not saying we will for sure do so. As others have pointed out in this thread, SS is the best annuity out there and it is not clear we need two.
I wonder if the OP knows about the potential for periodic increases in the benefit since they did not mention it in the OP. I agree that all else being equal that would tilt the decision towards the annuity.

When you say that the TIAA initial quote is always higher.... do you mean the premium/cost of the annuity? and not the monthly benefit?
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Old 04-21-2020, 10:51 AM   #83
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When I compare the results of the TIAA annuity calculator with the one at Immediate Annuities the TIAA monthly payment is about 3.7% lower. That was for a fixed annuity with no monthly increases and a 10 year guarantee payment, not sure this is the same product the OP is talking about.
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Old 04-21-2020, 11:34 AM   #84
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Originally Posted by pb4uski View Post
I wonder if the OP knows about the potential for periodic increases in the benefit since they did not mention it in the OP. I agree that all else being equal that would tilt the decision towards the annuity.

When you say that the TIAA initial quote is always higher.... do you mean the premium/cost of the annuity? and not the monthly benefit?
Sorry poorly worded. For any given starting amount to fund the annuity, TIAA always quotes a higher monthly payment than immediateannuities.com for us. This may be because TIAA has access to our account and knows the vintages of the contracts. Older vintages yield better results (higher initial payments).
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