“What’s the benefit of waiting until 75 and how much of a penalty in returns is there with an annuity?”
Below are my comments to The Globe and Mail Video: Why you should think about buying an annuity at age 75
Well, here we go again with someone who does not deal with the man on the street and does not understand the questions involved.
Most clients are not fancy pants people with large corporate pensions and multiple sources of income.but working men and women with jobs and small businesses.
Your interviewee proposes that waiting to 75, which is beyond life expectancy, to take an annuity is a good idea! Why not wait longer?
Very few people who are not active in financial firms have any good knowledge of markets,probabilities and financial products in general.They want a guaranteed income,without the fluctuations of the stock market or interest rates.
And my clients will be interested to hear that people were not buying annuities 15 years ago;this is just nonsense.Interest rates were higher but that is not why they were buying.They were buying guaranteed income,the same as today.
There are more important factors than interest rates,when deciding if and when to buy.Increasing longevity,your health,financial need and your own ages are just some of them.
Buying an annuity is personal, not a one-size-fits-all, product.