Linda, I will give you an example such as the one used in The Retirement Income Institute’s research paper. Given the choice, if you are going to spend $10,000 a year, not indexed, would you rather have a guaranteed lifetime income of $10,000 a year or a lump sum of $137,000 to draw $10,000 from, which is the amount needed to purchase an annuity paying you $10,000 a year? The research suggests most people would prefer the guaranteed income and would need a lump sum double the $137,000 before drawing $10,000 a year to spend on non-essential items.
