Recently, I wrote about how retirees could assemble their own pension to replicate the ones our parents and grandparents used to get. Two of its pillars would be Social Security benefits and your required minimum distributions (RMDs) from IRAs, 401ks, and other retirement accounts.
But that still may not be enough to provide you with a comfortable standard of living in retirement or to prevent you from outliving your money.
That’s where annuities come in. A times, annuities have a bad reputation. In this column I’ll focus on a specific kind of annuity—the single-premium immediate annuity (SPIA)—which could be an excellent complement to Social Security and your RMDs. (I’ll highlight other attractive annuity products in future columns.)