Read full article Annuitizing wealth closes retiree income gap, study says by Jonathon Chevreau.
My Comments:
Annuities are not for your heirs; they are for you to use. If some portion of a guarantee period is left after death,the beneficiaries can benefit then.
But that is a completely different issue.If you want to leave something,leave a house,a car or insurance,The annuity payment is your salary when you retire.If you don,t split your salary before retirement,why are you doing it now?
And if you are keen on supplying income to an heir,why not add them to a joint non registered annuity where he or she can benefit for their lifetimes after you have gone?
And ,contrary to the above,many people are buying annuities for safety as well as guaranteed income.Just ask those who got hammered in 2008 and see what they say.Annuity rates have been have been falling for years,due to lower interest rates as well as improved life expectancy.
And if the markets tumble again,all those mutual fund holders will be saying “enough,enough ” ;and you know the only product they can turn to for a fully guaranteed income.