A google search, and the wonderful AI that answers questions now, 20%-40% is the answer that spits out, which is - generally about what I think. But 20%-40% is a fairly broad range.
I'm talking about investing now (about 60 years of age), for a yearly dividend starting at retirement age for the rest of your life say, 68 or 70? Not 100% decided on retirement age and when to start collecting.
It's fairly obvious that if somebody expects to live a long time, say, has ancestors who lived into their 90s or 100s, then annuities make sense. If a person is in poor health at 60, they make very little sense.
There's also the safety argument. Though the market has outperformed annuities, at least since the big crash in 2008, there's no guarantee that will continue. Diversity is good, safety is good too, and getting a guaranteed return for the rest of one's life is a safe investment - IMHO.
The downside, is money put into an annuity is no longer there for people you wish to leave your estate to.
So, painting a general picture - a person who expects to live at least to 85, no kids and scared of the market, 40% feels closer to my ideal than 20%. But I'm curious if there's any overall guidelines or formulas that one can use for this kind of thing.
Are annuities generally considered a sound part of a retirement plan?
Thanks.
