at an early age is not really very attractive and I would suggest this is at the heart of concerns about annuities being perceived as offering poor value.
People may come to see the value of annuitizing
, but they may need to be convinced.
"Most of our people annuitize to their need: They figure out the basic expenses they will have in retirement and how to annuitize to that," he says, "and we work closely with them to make sure that they can meet their legacy objective, if they have one, while still annuitizing
part of their balance."
The key point: Annuitizing
(or using a lifetime immediate annuity) produces income for a lower expenditure than does using other products.
As the year draws to a close, pension plan sponsors may want to consider annuitizing
their pension liabilities.
"If you had needed money during the last 10 years, you could have received guaranteed income for life or for almost any a period of years by annuitizing
A key measure of the relative attractiveness of annuitizing
pension liabilities dipped slightly in August.
Given these guarantees, many clients happily draw down their accounts without ever annuitizing
, comforted in the knowledge that they'll be able to maintain an adequate income stream for retirement while assuring access to their principal should the need arise.
This, despite the fact that a 2007 Wharton Financial Institutions Center study ("Rational Decumulation') concluded that annuitizing
is not only effective, it's efficient.
Jill, like Ann, appreciates the benefits of a life annuity and decides she only needs an additional $200/month (annuitizing
one-third of her VA cash value).
The index, which tracks the allure of annuitizing
pension liabilities -- a trend that is becoming increasingly popular -- provides monthly directional data on the market.