UBS On-Air: Market Moves Top of the Morning: Annuity income as part of your retirement strategy
Apr 29, 2025
Discover how annuity income can boost your retirement strategy by providing reliable cash flow and reducing market risks. Experts discuss the benefits of annuities in alleviating longevity concerns and how they complement Social Security. Learn about the barriers retirees face when considering annuities and the importance of consulting financial advisors. With today’s rising bond yields enhancing attractiveness, these insights help navigate the steps to integrate annuities into your financial planning.
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Value of Annuities in Retirement
- Annuities provide a reliable income stream regardless of stock market fluctuations.
- They offer longevity protection and help retirees confidently spend down assets.
Why Retirees Avoid Annuities
- Many retirees hesitate to buy annuities due to loss aversion and fear of losing control of funds.
- Complexity and a focus on account balances over income also deter adoption despite benefits.
Current Appeal of Annuities
- Annuity payout rates have risen significantly with higher interest rates, improving their appeal.
- Lower expected stock returns make annuities a cost-effective complement to retirement portfolios.