From Moneyweb.co.ca The great risk to a living annuity lies with capital erosion, not return volatility
Now here is one great reason to understand what type of annuity you are buying.There are basically 2 types of annuity,an investment type often called a fixed annuity,an immediate annuity retirement annuity and the like.
The other type is a life annuity and that is the type you want when you hit sixty as referred to in this article.Unless you are not worried about losing funds in a market meltdown,you need to have your capital fixed.Then you can proceed to buy a life annuity which gives you a fixed,unchangeable amount of income for the rest of your life.
Don’t confuse these 2 types of annuities. You can invest and gather your funds together all your life,but when ready to hang up your spurs, you need a life annuity.