Annuities

[Anonymous]

I have a small ESOP at a previous company.. stuck there for a variety of reasons. It's about 244K. I got a statement in the mail today (year end, 2022) with a Lifetime Income Disclosure statement. In it, they say that I would receive $1,487/month if I were 67 on Dec 31, 2022. Joint/survivor would be $1,257/month. No COLA. Based on a 10 year yield of 3.53%.

These payments translate to a 7.3% and 6.2% payment rates. Are annuities paying that high? Any references to other low cost annuities would be greatly appreciated.

[Anonymous]

These payments seem like a good deal. Not surprised that insurance/annuity salesmen didn't jump on this question to refute it or validate it.

[Anonymous]

Nice. If they started the annuity back in the 90s it could be that high. We bought one at 6% back then. How nice to get one from employment.

[Anonymous]

BTW we can draw 6% a year without touching principal which is nice to have as part of DH's retirement which has been nice to have since he's unemployed due to ageism and now illness and is trying to hold off until 70 for his SS. Yes fees are higher but annuities can be worthwhile for some situations.

[Anonymous]

Annuities are scams.

No you will not get those payouts the fees will eat it all and beneficiaries never see a penny.

[Anonymous]

Anonymous wrote:Annuities are scams.

No you will not get those payouts the fees will eat it all and beneficiaries never see a penny.

OP. Can you clarify please? The document clearly says I will get $1,487/month (assuming I'm 67 on Dec 31, 2022), which works out to 7.3% payout. Are you saying they will deduct fees from that amount? I've never done an annuity so would like to know what I need to watch out for. Thanks!