Should I invest $1 million of my retirement savings in an annuity?

The steady path to a dream retirement

The steady path to a dream retirement

I’m 59 years old and plan on retiring within the next year. My adviser is recommending that I invest $ 1 million, about 25% of my nest egg, in annuities to generate retirement income. That percentage seems high to me. Is there a rule of thumb about how big a role annuities should play in one’s retirement strategy? –David

I’m not aware of any rule of thumb for what percentage of savings one should devote to an annuity, although over the years I have seen some people suggest figures of 25% to 50% (and sometimes much more).

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