...annuity contract that would pay out monthly guaranteed income at age 75..
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I have heard of annuity contracts that begin to pay out less after 75 and then, at 83 or so, people are told they no longer have enough life span left to justify the annuity. I’m not sure what happens then....they need to withdraw everything and pay the tax on the excess?
Always reminded me of those term insurance policies that suddenly jump in payment costs at age 73.
“ I have heard of annuity contracts that begin to pay out less after 75 and then, at 83 or so, people are told they no longer have enough life span left to justify the annuity.“
I am in Financial Services and I can assure you no annuity AS DESCRIBED exists.
You can have a period certain payout (10 years for example) or a lifetime annuity pay out. You can be told you are too old for a period certain to begin. You can have an annuity that you don’t turn into an income stream. There are many other choices...just not what you described.