No. of Recommendations: 1
You have a lot of good feedback on immediate annuities - I just wanted to add one more. For many, an immediate annuity can replace or take the form of a pension - they work the same way. You trade a lump sum for an income stream. That income stream can be designed to pay for life, for a fixed duration, and/or also pay income to a spouse.

While few would argue that pensions are a bad idea, many here argue that immediate annuities are a bad idea when essentially, they are exactly the same thing. Note, I have never recommended an immediate annuity to anyone but I am not one that would say that they are a bad thing. Millions and millions of Americans have depended on pensions for generations so they cant be all that bad.
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