Four Strategies for Combating Low Annuity Yields
The current interest-rate environment and longevity are conspiring against would-be annuity purchasers, but that doesn't mean you should avoid the vehicle altogether.
To help avoid outliving their assets, more retirees should defer Social Security and consider income annuities, according to a report prepared by the General Accounting Office for the U.S. Senate's Special Committee on Aging.
Yet many retirees do just the opposite, according to data presented in the report. Between 1997 and 2005, roughly 43% of Social Security-eligible individuals began taking benefits within one month of turning 62, even though waiting until their full retirement age would've translated into a substantially higher payout.