Poll: How Much Income Are You Planning From Purchased Annuities?

[Midpack]

Seems timely with some of the fear of bonds threads circulating again...

Not the poll is about annuities YOU have or plan to purchase, not Soc Sec, employee pensions or other annuity equivalents.

 

[Alan]

Seems timely with some of the fear of bonds threads circulating again...

Not the poll is about annuities YOU have or plan to purchase, not Soc Sec, employee pensions or other annuity equivalents.

Would you like those of us with pensions to not vote in the poll, or vote No Plans?

 

[fritz]

Again (as earlier today)

edit/add (meaning I like the way you think)

 

[FIREd]

It's too early to tell whether I will purchase an annuity. It depends on where my portfolio is heading when I reached my 70s. If the portfolio performs well, I may never buy an annuity. If not, the goal would be for SS and annuity income to cover our basic expenses. I am not sure how much we will get from SS, but based on my best guess annuity income might represent up to 25% of our total income.

 

[brett]

Not planning to purchase an annuity now, perhaps in the future.

IF I was planning to buy one, now is definately NOT the time that I would buy.
Interest rates are too low hence the annuity premium is too high. Better to wait for the inevitable round on inflation and higher interest rates that seems to be coming down the pike.

 

[2017ish]

It's too early to tell whether I will purchase an annuity. It depends on where my portfolio is heading when I reached my 70s. [And upon rates then quoted for SPIA products, and upon how far off I am with my continuing hyper-conservative/illogical "$0" working estimate for Social.] ...

+1.

I'll likely look closely at getting one sufficient to cover DW's baseline, non-travel expenses in anticipation of my earlier demise. Given that we are 57/56 now, I can't fairly answer the poll--even with a 10ft pole.

 

[Fedup]

Not planned. My SS at 70 will be my annuity.

 

[stepford]

Probably none, but still haven't entirely ruled out a QLAC. More than 50% of my assets are in tax deferred accounts and my parents both lived well into their 90s, so I'm probably the target audience for one of these.

 

[Crewer]

Both DH and I had pensions, which the company changed to a defined contribution plan. instead of taking the lump sum we chose to annuitize but we did it by taking the lump sum and purchasing single premium annuities with clause about doubling the payout if you need care. Does that count? We think of them as the pensions we were expecting before the company changed the plan. Anyway it was about a quarter of our assets when we purchased (not including projected SS).

 

[W2R]

I voted over 50%. This would be from an SPIA annuity I may buy for around $100K if/when I reach my mid 80's.

By that age (assuming current rates), that will cover over 50% of my spending and my SS + pension will cover the rest. My investments can just sit there untouched, for my heirs. Until my mid 80's, no annuity is planned. If the rates are lousy by that time, I'll just skip buying an annuity entirely.

 

[samclem]

None planned, so I answered "zero". The exception would be if we approach Otar's "Red Zone" and the combination of mortality credits and a favorable interest rate environment would let us buy a SPIA and maintain a more satisfactory spending level than we could otherwise get.

 

[Midpack]

Would you like those of us with pensions to not vote in the poll, or vote No Plans?

No plans. I'm curious who actually has bucked/plans to buck the annuity loss aversion hurdle by sacrificing a significant chunk of their $ nest egg for an annuity. People repeatedly fret about future bond returns, but how many act?

I guess I should've stipulated a timeframe. W2R's example is over 50%, but presumably 0% until she's mid 80's.

I'm watching our annuity hurdle, but I don't plan to buy and annuity. Wouldn't consider it at today's horrible payout premium. If we do, it probably won't be until we're 80+ years old, and then a SPIA unless something better comes along.

 

[W2R]

No plans. I'm curious who actually has bucked/plans to buck the annuity loss aversion hurdle by sacrificing a significant chunk of their $ nest egg for an annuity. People repeatedly fret about future bond returns, but how many act?

I guess I should've stipulated a timeframe. W2R's example is over 50%, but presumably 0% until she's mid 80's.

I'm watching our annuity hurdle, but I don't plan to buy and annuity. Wouldn't consider it at today's horrible payout premium. If we do, it probably won't be until we're 80+ years old, and then a SPIA unless something better comes along.

Right, I'm sorry if I voted wrong. If it is important let me know and I can edit the poll.

Also, in my case the $100K will not be a significant chunk of my nest egg at all. Actually I would have plenty from dividends, but I am thinking that I may want the convenience of having a predictable amount deposited each month for my bills (which are automatically deducted from checking). This could make life easier if I am senile or dying, and can't fool with any of it myself.

And even if (heaven forbid) I was crazy as a loon by that age and gave my entire portfolio to the Hare Krishnas or some weird cult or a con man, I'd still have enough to live on from the annuity, SS, and pension. I don't expect that to happen but I guess nobody really does, and I want to protect myself from myself in that event.

 

[ShokWaveRider]

Unless interest rates go up significantly, I will not be buying any in the foreseeable future. Even then I will buy CDs and create my own.

 

[Midpack]

Right, I'm sorry if I voted wrong. If it is important let me know and I can edit the poll.

You didn't vote wrong, in retrospect the poll needed a timeframe stipulation, but I'm not sure how I'd include that in a meaningful way. I guess I should have framed it in % of liquid net worth have/will folks spend on an annuity. Oh well, it's not the first time I've done a poll with unintended results...sigh.

 

[W2R]

You didn't vote wrong, in retrospect the poll needed a timeframe stipulation, but I'm not sure how I'd include that in a meaningful way. I guess I should have framed it in % of liquid net worth have/will folks spend on an annuity. Oh well, it's not the first time I've done a poll with unintended results...sigh.

It's incredibly difficult to write a good poll that will provide the desired results, here. I have an awful time doing it, when I write polls. I have sure tried often enough, and I'm hoping that practice makes perfect (eventually).

 

[2017ish]

It's incredibly difficult to write a good poll that will provide the desired results, here. I have an awful time doing it, when I write polls. I have sure tried often enough, and I'm hoping that practice makes perfect (eventually).

Unless very simple poll, it is going to be quite difficult. Such a variety of backgrounds, ages, and retirement funding (and spending) among even the active posters. Arriving at a perfect poll of any complexity would be on par with successfully herding cats.

 

[supernova72]

I voted "None Planned" as I'm one of those with a pension (although I treat is as an annuity). Hence my sightly more aggressive portfolio mix of 70/30. Chao.

 

[Cobra9777]

None planned. We already have 2 pension annuities. And later, 2 large SS benefits. If I had a do-over, probably would take one of the pensions as a lump sum. We're already a bit too heavy on the annuitization side. So it would be highly unlikely that either of us would purchase a SPIA.

 

[Gill]

I may win the prize. Have purchased 12 annuities, two of them deferred to age 85, at a cost of over $1.1 million, currently distributing $104K and will total $138K at age 85.

 

[2017ish]

I may win the prize. Have purchased 12 annuities, two of them deferred to age 85, at a cost of over $1.1 million, currently distributing $104K and will total $138K at age 85.

Out of curiosity, any of them COLA'd (or equivalent)? Or, perhaps, the deferreds serve that purpose? Spread among variety of companies?

 

[Gill]

No, none of them are COLA'd. Yes, they are spread among ten insurance companies. I always defer my initial payment one year which is the maximum allowed. I view the equities in my portfolio as well as a chunk of TIPS and I-Bonds as my inflation hedge.
Gill

 

[DrRoy]

No plans. The fees drive me crazy.

 

[Dawg52]

Undecided. If I make it into my 70's, I will evaluate at that time. I've always thought it would be a good idea to have some sort of guaranteed income stream in addition to SS to take care of basic living expenses late in life. Worried about the old mind going haywire at some point. But I do have a nephew who is very mature(40 now) and conservative that I can probably turn the keys over to when the time comes.

 

[gerntz]

Don't enter my mind.