There's no way I would classify annuities as 'much safer' given the small percentages here. Some, yes, but if there's a black swan (i.e. systemic financial collapse) nothing is safe.
That is why you have the off-grid bunker, right?
And lots of MREs.
But, hey, look at the bright side - in the apocalypse,
everyone’s FIRE plan lasts as long as they do...100% success rate.
In a more practical vein, and related to Lawrence’s post, below are circumstances that I think warrant consideration of some amount of annuitization.
1. When the retiree has no pension or SS, and begins retirement in Otar’s “Gray Zone”
2. When the retiree prefers a “safety first” approach to retirement income, and has inadequate guaranteed income sources for essential expenses.
3. When a retiree is approaching the “annuity hurdle” due to a bear market and/or spending (see Fullmer).
4. As a substitute for bonds in a one’s AA (see Pfau research).
5. When “Maximum Utility” is most important to the retiree (see Milevsky, Sharpe, et al).
6. When cognitive decline or financial illiteracy/disinterest is a real concern
And, for the record, I’m not a huge annuity ‘fan boy.’ I’ve simply concluded that it is another tool in the toolbox and, under the right circumstances, would likely buy one.
PS: Also, it’s not accurate with SPIAs that ‘you die and poof it’s all gone.’ Go to immediateannuities.com, and you’ll see that the “Cash Refund” option (if you die early, your premiums are paid to your heirs) costs very little; monthly payments are reduced <5%.