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Ecology of Money

How Much Should You Annuitize?

The answer depends on many factors, including your life expectancy, spending needs, other sources of income, and the needs of your survivors.

Whether you have the option to convert your pension into monthly payments or you're converting a lump sum from a 401(k), one perplexing question facing retirees is how much, if anything, to annuitize?

There's no real boilerplate formula to help you answer this question. Ultimately, you'd like your money to last as long as you do (or your spouse/partner). And you need the insurance company that provides the payments to stay in business, as well!