Retirement Dilemmas: Annuities, Travel, and Burnout

An annuity can make sense for a single 67-year-old with no heirs, as it provides guaranteed income for life. Immediate annuities, which offer a lump sum in exchange for a series of payments, are a good choice for those who value security and are comfortable with making an irrevocable decision. However, most financial advisers do not recommend annuities due to high costs and deferred taxation issues associated with deferred annuities. It's important to understand that the payout rate of an annuity is not the same as a return on investment, and annuities do not adjust for inflation or leave money for beneficiaries after death. Ultimately, the decision to purchase an annuity depends on individual circumstances and preferences.