Dr. Wade Pfau’s research helps us understand that systematic withdrawal plans do not obviously outperform annuities as a way to meet retirement spending goals as well as providing support for contingencies and legacy. He adds:
“Advisors with aversion to income annuities think carefully about whether their advice is serving the best interest of their clients.”
– Dr. Wade D. Pfau, Retirement Income Showdown: Risk Pooling vs. Risk Premium, 2016 Professor of Retirement Income at The American College
Check out the complete paper here.