What happens when you wait to receive income from an annuity?
If you are waiting because you believe you will get more money each month, well, that might be true; your monthly payments might be greater.
But how much greater? Let’s say instead of taking a $1000 monthly annuity income today, you wait 6 months and receive $50 more annuity income or $1050. You have missed out on $1000 x 6 months which you are now making up at the rate of $50 a month. That means that you must live at least 10 years to make up this difference.
But this ignores the fact, that for annuity rates to increase by 5% in 6 months, requires a lot higher bond interest rates and very strong business activity.
This is not what is happening today. Interest rates have been at an all-time low for a long time and it may well be 2014 until interest rates increase. If your investment is not making a solid return, you need to take advantage of coupling your age with the capital to get yourself a good, guaranteed annuity income.