Jean Chatzky Backs Annuities as Retirees With Paychecks Spend 2 Times More
Updated
Updated · Yahoo Finance · Sep 5
Jean Chatzky Backs Annuities as Retirees With Paychecks Spend 2 Times More
3 articles · Updated · Yahoo Finance · Sep 5
Summary
Jean Chatzky says retirees should consider turning part of a nest egg into an annuity to create a steady monthly paycheck rather than self-managing withdrawals.
Twice as much spending has shown up in research on people receiving annuity checks, she said, because predictable income makes retirees more comfortable using their money.
Annuities convert a lump sum paid to an insurer into income for a fixed term or for life, with payouts shaped by deposit size, age, gender and interest rates.
Fees, complexity and limited flexibility still cloud the products: buyers often cannot reverse the contract, change payments or leave remaining income to beneficiaries, though some policies can cover a spouse.