How much retirement income can one generate in 2012 with $100,000 to invest? Steve Vernon looks at immediate annuities as one of three ways to generate income from retirement savings. "The retirement income generated from this method will vary depending on the type of annuity you purchase," he writes, "and will also be affected by your age, sex, and marital status." He looks at fixed annuities, variable annuities and inflation-adjusted annuities, showing the annual income for a single man, a single woman and a married couple at three different ages. The results? The single man who invests in a variable annuity comes out on top, generating $8,545. Least profitable is the married couple who invests in an inflation-adjusted annuity, with just $3,594 of earned income. The lesson? Immediate annuities generally provide more retirement income than managed payouts, though you generally must give irrevocable control of your savings over to the insurance company in order to gain this sort of financial security.
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