No. of Recommendations: 3
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You keep talking about the math. Did you actually read the NBER paper? >>
Yes! And I also understand the effect of withdrawing money for 30 years from an investment portfolio with variable returns vs. providing retirement income with an inflation adjusted, guaranteed annuity. The more of your income you get with the annuity, the less you need to withdraw from the investment portfolio.
If Uncle Sam is willing to sell me an inflation-adjusted life annuity at a big discount to what a commercial insurer would charge, and I haven't been diagnosed with a disease that's highly likely to shorten my life expectancy, I'm a buyer.
Would I buy a life annuity at commercial insurer prices? Absolutely not.
Note: That $182370 increase in spending is for a married couple collecting on the higher earning spouse's record. It's only $100,000 or so for us single folks. Still, that's not the kind of money I'm willing to leave on the table, if I know better. Math is hard. {{ LOL }}
<< Jim has on several occasions discussed how to deal with longevity risk, including tontines and deferred annuities. }}
The cheapest annuity you can "buy" is delaying SS from age 62 to 70.
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