Retiree Questions $100,000 Annuity Balance as Advisers Say Lifetime Income Depends on Contract
Updated
Updated · MarketWatch · Jun 14
Retiree Questions $100,000 Annuity Balance as Advisers Say Lifetime Income Depends on Contract
1 articles · Updated · MarketWatch · Jun 14
Summary
$100,000 left in an account does not by itself mean a retiree’s promised lifetime income will stop, advisers said, because annuity payouts are typically governed by the contract rather than the displayed balance.
Hayley Dickson of RIPPL Wealth Management said a full lifetime-income election usually converts retirement assets into a guaranteed payment stream from an insurer, shifting longevity and market risk away from the retiree.
Advisers urged the retiree to review the payout election and contract terms with the original seller or the insurance company directly, and to seek an independent second opinion if the explanation remains unclear.
Experts said annuities often confuse buyers because statement balances can look like dwindling savings even when they do not reflect total future payments; some also warned that annuitizing can limit access to principal or leave little for heirs.