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It's true that interest rates are at a record low. Using that logic, it's a terrible time to buy an annuity. Or is it? If you wanted to buy an immediate annuity 20 years ago, and were waiting for interest rates to rise back to historical average levels, you'd still be waiting.

I helped my mother buy immediate annuities between ages 75 and 80. All have small inflation kickers (up to 2 or 3%). She's now age 85 and in fairly good health. Her annuity income, along with SS, is the cornerstone of her spending. This is supplemented by an investment portfolio that covers big ticket expenses and should last her lifetime.

My point is that the time to buy an SPIA is when you need it and you are age ready. Even those who bought them when interest rates were high, say in 1975, found that rates went even higher after that.
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