Are you waiting for interest rates to go up before you take your annuity?
Even our government have realized that waiting may not be the thing to do as it pays a reduced pension at 60 and a full pension at 65. The person who waits till 65 must live till 73 or 74 to receive the same amount of money.
Do you have a guarantee that you will that long and, hopefully in good health?
So if you are waiting, how much does your payment have to increase before you will act? Will $20 or $25 increase be sufficient? Let’s say it’s $25 a month and you wait 6 months for that increase. If the original amount has been increased from $500 to $525, or 5% more, are you better off?
Simple arithmetic tells you that have missed 6 payments of $500 or $3000. So to make up that $3000 at $25 a month will take you 12 years. Is that a good deal?