Fifty-three percent of Americans say they would prefer guaranteed lifetime income of $660 a month over a $120,000 lump sum payment, the LIMRA Secure Retirement Institute (LIMRA SRI) learned in a survey.
When asked why they would take the guaranteed income, 57% said they expect to live a long life and 46% said it was because it would give them peace of mind. They also generally said they would stick with their decisions. When asked what the minimum lump sum would be for them to select a one-time payment over guaranteed income, 46% said they would never switch to the lump sum.
For those who chose the lump sum, nearly two-thirds said it was to maintain control over their funds, and nearly three in 10 said it is because they already have guaranteed income from other sources. The survey also found that 36% of pre-retirees and retirees plan to use guaranteed lifetime income to cover basic living expenses, and non-guaranteed income sources for the rest of their expenses.