“The view of the income annuity as anything like a routine first-choice retirement income option remains a good ways off. Too many individual factors can get in the way of using guaranteed income annuities despite their obvious benefits. However, the new research is clear that if and when partial annuitization strategies are regularly offered and recommended, especially when they are well framed, the idea that income annuity usage would be “extremely rare,” as Modigliani observed nearly three decades ago, will no longer be remotely accurate. And that would be a very good thing indeed.”
I would appreciate it if you read the whole column. Indeed, I recommend the entire magazine.