When to Choose a Single Premium Immediate Annuity Over an IRA Withdrawal

Episode 39 of Annuities with Fexingo examines the single premium immediate annuity (SPIA) as an alternative to systematic IRA withdrawals for retirees aged 65-75. Lucas and Luna break down the math using a real-world example: a 70-year-old with $500,000 in traditional IRA assets deciding between a 4.5% systematic withdrawal vs. a SPIA paying $3,100 per month for life. They discuss longevity pooling, inflation risk, and the 'sleep-well factor' — when giving up control of principal is actually the point. New data from the 2025 LIMRA Individual Annuity Sales Survey shows SPIA sales up 22% year-over-year as boomers seek guaranteed income. The hosts also tackle the objection many retirees raise: 'What if I die early and the insurance company keeps my money?' They walk through cash refund and period certain riders and when each makes sense. This episode does not cover deferred annuities, variable annuities, or QLACs — those were previous episodes. Instead, it zeroes in on the pure income-for-life trade-off, with a clear decision framework for someone at the cusp of retirement. #SPIA #SinglePremiumImmediateAnnuity #RetirementIncome #GuaranteedIncome #LongevityRisk #SystematicWithdrawal #IRAWithdrawal #LifetimeIncome #LIMRASalesSurvey #CashRefundRider #PeriodCertainRider #InflationRisk #RetirementPlanning #Finance #AnnuitiesWithFexingo #FexingoBusiness #BusinessPodcast #IncomeForLife Keep every episode free: buymeacoffee.com/fexingo