- You are likely to live a long life and afraid that you will outlive your money.
Annuity makes sense if you expect to live a very long life. “The main benefit of annuity is having a source of income for the rest of your life, so if you're worried about the future, annuity will bring you peace of mind,” says financial planner Brian Walsh of SoFi.
- You have no control over spending.
If you're worried about spending too much or too little in retirement, annuity can help you. “People can't keep up with their expenses sometimes because for many years they have been paid every two weeks. “Using annuity to generate a steady stream of income can be beneficial in these situations”, says Brian Walsh.
- You are a very conservative investor.
If you are a conservative investor and your goal is stability and not a high income, then the retirement annuity will give you a stable income for the rest of your life. Financial planner John Bovard of Incline Wealth says the annuity makes some clients feel safe: “My client didn't want to take on extra risk and didn't want extraordinary returns. We knew her monthly expense amount, therefore annuity turned out to be the most convenient product on the pension market”.
Source: https://www.businessinsider.com/personal-finance/signs-annuity-could-help-fund-retirement-2021-9
Photos are from open sources.
