A Reddit user asked if buying an annuity for their aging parents makes sense. With $687,000 in investments and $69,000 in annual income, they considered the variable percentage withdrawal method. Some suggested it could work, but others pointed out rising annuity rates in mid-2025, offering fixed income for life, especially for older buyers.

If the parents put $500,000 into a joint immediate annuity, they could generate $2,350 to $2,500 monthly, adding to their $69,000 in Social Security and pension income. This could bring their total annual income to $97,000 to $99,000. But committing to an annuity means limited access to funds for emergencies, medical costs, or heirs.

Read more at Yahoo Finance: Should My 80-Year-Old Dad and 65-Year-Old Mom Turn Their $687,000 Nest Egg Into an Annuity? ‘I Don’t Think They Realize How Much They’re Spending’