I will take your reaction as a genuine one and will reply to it with, as they say in cricket, "a straight bat".This doesn't pass the common sense test to me on so many levels. If annuities are such a great deal and insurance companies can do it better than we can, why isn't everyone buying an annuity? Why don't corporations, endowments, and indeed governments run to insurance companies, saying, "here take my money, your returns are so great."
I don't know. They sound like a "just say no" situation to me.
So. Someone works for a large organisation for their entire career. 30 or 35 years. When they retire, they receive a pension which pays out 2/3rds of their pre retirement income (average of best 3 or best 5 years).
Does this sound like a good deal, for a person with a long term career?
If so, then you've just made the argument for an annuity.
People are not good at managing lump sums. They really are not. Seen it 100 times over.
Statistics: Posted by Valuethinker — Tue Apr 02, 2024 3:10 am