How much to invest in an immediate annuity

Q: I’m 72 and I have a very small pension. I’d like to buy an immediate annuity to supplement my income. How do I figure out how much I should invest in the annuity?

A: A good way to calculate how much to invest is to add up your regular expenses in retirement, subtract any guaranteed sources of income, such as Social Security and your pension, and buy an immediate annuity that provides enough income to fill in the gaps.

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