Adding a single-premium immediate annuity to a retirement portfolio can increase income and wealth, according to an annuity industry trade group.
Researchers at Milliman Inc., Seattle, have performed an actuarial analysis that shows that including a SPIA in retirement arrangements can increase one typical middle-income couple’s chance of meeting its retirement income goal to as high as 95%, from 77%, according to NAVA, Reston, Va., which commissioned the analysis.
That couple might leave $1.3 million behind after both spouses died, compared with a bequest of $945,000 if the couple had no SPIA, NAVA says.