Reducing volatility risk prior to retirement

bostonerimus

Deleted_User said:

Delayed Income Annuities are worth considering as well. I don’t have UK payout rates, but a 65 year old female in the US buying a DIA to pay from 85 gets a payout ratio of 12.35% (2 year old data).  Thats longivity insurance paying over 12k in perpetuity at the cost of 100k.  

The general idea is similar to delaying state pension. 

I suppose my attitude to a 5% payout rate at age 65 is coloured by the quote I got from TIAA in the US a couple of years ago of 7.5% payout rate starting at age 55. That rate is actually determined by when I contributed the money and as it was back in the late 1980s and early 1990s it gets a good rate. But even in the regular market US rates seem to be a bit higher as a single life level annuity for a 65 year old male in the US pays out at 5.8%...maybe that reflects the slightly shorter lifespan in the US.
I also looked at buying a deferred annuity in the US and it would cost 15k for a 65 year old male to buy an annuity that would start paying 5k/year at age 85.

[Deleted User]

That seems like a  high payout rate. Maybe its reasonable given the projected growth of the fund in 20 years. I like that kind of insurance.   Not all providers are equal though. Worth checking the credit rating.