Let's put aside the buzz words of the financial industry and examine the actual architecture of it:
"Annuities have long been the basic building blocks of the U.S. retirement income system. Both Social Security and traditional employer pensions are annuities, paying retirees a specified sum each month for as long as they live. But due to the decline in Social Security replacement rates, for any given retirement age, and the shift in employer plans from defined benefit pensions to 401(k)s, a growing number of workers are entering retirement with more nancial savings and less annuity income.
Economists generally agree that many retirees would benefit if they annuitized at least some of their 401(k) savings." CLICK HERE TO SEE ENTIRE ARTICLE.