Why the best annuity in Singapore may not be enough

I HAVE always believed that annuities have a place in every retiree’s spending plan. An annuity is one of very few financial instruments – perhaps even the only one – that can mitigate the risks of both longevity and investment volatility at the same time.

This is especially important for two types of retirees.

The first is savvy in investments. He understands markets and compounding. He knows that the worst time to withdraw from his portfolio to fund expenses is precisely when markets are down, because doing so locks in losses and causes his money to run out faster than it should.