A New Study Tested the 4% Rule Against Annuities—This Retirement Strategy Scored Best

A study found that combining annuities with portfolio withdrawals provides better retirement income security than using either alone. Testing four strategies, the highest-scoring involved purchasing a 50% immediate annuity and withdrawing from the rest, balancing guaranteed income with asset preservation. Gradual annuitization also scored well. Delaying Social Security improved outcomes. Simple annuities like SPIAs offer guaranteed lifetime income but remain underused. The ideal mix depends on individual needs and goals.