What an annuity is equivalent to is buying a bond with fixed monthly interest payments, with an unknown end point if it's for life. However, the for life actuary uses your life expectancy from actuarial tables, which is very generic.
my current life expectancy is
Northwest Mutual life span calculator is 91 years old after answering all questions accurately
Social Security calculation based upon birthdate only 84.6 years old
which life expectancy do you think the retirement company picked with the actuarial lump sum payout?
|