Of course, the actual calculations are much much more complicated, taking into account large risk pools, probability targets, mortality 'drifting', etc, etc. But the concept is the same.

Now, this doesn't mean one should not annuitize....it only means that it is an expensive way to create a future income stream.



but OP asks a good question (IMO):


what's a better was to create *stable* 30yrs income stream?