Partial annuitization: A useful planning strategy: Opinion

September 5, 2014 by Ed McCarthy, CFP

There’s an interesting and well-known dichotomy between researchers’ view of income annuities’ value and retirement plan participants’ behavior.

Researchers correctly argue that guaranteed income annuities are excellent tools for covering retirees’ basic expenses and securing a lifetime income for one or two lives. Participants in defined contribution (DC) and defined benefit (DB) plans might agree with those points, but they vote otherwise with their funds. Click here to read…

One possible reason for the low annuitization rates is that retirees tend to think in either-or terms.

Originally Posted at LifeHealthPro on September 3, 2014 by Ed McCarthy, CFP.