5 thoughts on “Forbes post, “Do You Get Your Money’s Worth From Buying An Annuity?”

  1. For public EE’s earning below the median — the regular folks — there is real need for an annuity. Public pension are lousy for them. They are defined benefit programs which are promises by legislators and other political types who are getting highly, highly, highly spiked pensions and are grossly mismanaging the pensions. Anyone talking about pensions and not mentioning spiking first and foremost do not know what they are talking about. Regular folks pay for the spiking and excessively high ER contribution rates which means they do not get a raise or a COLA thus lowering their pension. They when they retire they do not get a COLA meaning their pensions are nearly cut in half in their old, old years. A cut in benefits for them cuts all the way to the bone. But those getting the highly spiked pensions are still way ahead even after allowing for inflation.

  2. You are an actuary and you talk nothing about what makes annuities work…mortality credits…and the key factor for retirees is income. Annuities are not expensive…as compared to what? Many of the index annuities have zero fees…and of course, an immediate annuity has no fees…and please don’t make the 7% assumption when talking to someone without a lot of wiggle room. Lastly, people with guaranteed income are happier and live longer than those without.

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