when to buy an annuity?

anyone have a link to an annuity table with year by year yields in the 75-85 yr range?

from the text is seems like if you have no heirs, its better to buy an annuity at the age of 80 or so? surely this seems a little late?

You generally buy annuity when you have:

  1. Longer than average life expectancy (Acts as hedge against longevity risk)

  2. Greater preference for lifetime income.

  3. Less concern for leaving money to heirs.

  4. More conservative investing preferences.

  5. Lower guaranteed income from other sources (Like no pensions)

Its not that its better to have annuity at the age of 80 or so. It all depends on individual’s preference. You can take out annuities immediately by paying lump sum amount (premium) or defer it in future as well. Obviously, the older the person is, the cheaper it will be for him to get the annuity as his/her probability of survival (life expectancy) goes down with age.

There is one kind of annuity, cannot remember what was its name which is a product for aged person, over 80 or so.


Deferred annuity or something like this.

I missed to note that person should evaluate by herself what is the chance to experience such mature age and longevity risk and purchase annuity earlier (maybe about 50 or 60) but with distributions not before 75-80.

In the cases when person is already aged, IMO, the only thing to left is to ensure cheaper funeral costs, not the annuity.

Are you talking about ALDA (Advanced life deferred annuity)?

Correct. I should repeat this for 20th time, indeed:)

reading 30: blue box 2: part 4.

male 75 no heirs $1.2m portfolio… recommendation is to increase equity, decrease FI, to aim for a 10%+ return requirement.

Surely an annuity will return 7-8% at this age?