The studies that I have read show that commercial annuities are actuarially neutral for purchase age, unlike social security which pays to wait.I recall couple of studies showing around age 80 is the optimal time for buying an SPIA if you're going to. Less inflation/default risk, and your remaining lifespan can be projected with more accuracy than when younger. You can also judge, based on portfolio size, if you're going to *need* an annuity at that age.The spia doesn’t go up in payments over time. The “4% rule” includes adding inflation every year.
Late 80s I’ll take the inflation risk. 60s I’ll take 4% rule.
Statistics: Posted by Harmanic — Sat Sep 28, 2024 8:46 pm — Replies 247 — Views 21745