Compelling Reasons Why So Many People Consider a SPIA

According to one survey¹ respondents favored a SPIA as a long-term retirement income solution because it provides the opportunity to:

• Have guaranteed income during retirement years
  
  
• Cover specific essential expenses during retirement years
  
  
• Avoid being a financial burden on children
  
  
• Satisfy IRS required minimum distributions
  
  
• Pass an estate on to heirs or reduce estate taxes
  
  
• Realize other miscellaneous tax advantages
  
  
• Provide temporary income until Social Security or other retirement income begins
  
  
• Spread out tax liability on a highly appreciated asset
  
  
• Pay long-term care insurance policy premiums
  
  
• Avoid IRS penalty for early withdrawal
  
  
• Spend down an estate
  
  
• Pay life insurance policy premiums
  
  
• Fulfill legal or financial obligations (e.g., alimony, business buy-sell, etc.)

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¹ Source: Annuitization Study, Matthew Drinkwater, LIMRA International 2003.