AARP has published a tip sheet called Money Matters that offers advice on spending down one's assets in retirement.
The tip sheet addresses a number of areas, including:
- When to claim Social Security.
- Asset Allocation.
- Withdrawal rates.
- The role of one's home in retirement planning.
For each topic, AARP offers a description of common or current practices, conventional wisdom and their general guidance.
With respect to annuities, AARP notes that most people pay very little attention to the products and as a result annuities are seldom used voluntarily. AARP's recommendation, however, is to annuitize a portion of retirement savings that is sufficient to cover the portion of recurring living expenses that exceed Social Security and any pension income. AARP also recommends consideration of inflation protected annuities.