A Reddit user recently asked whether their 80-year-old father and 65-year-old mother should convert their $687,000 retirement nest egg into an annuity. The couple already brings in about $69,000 annually from Social Security and a pension, and their estimated expenses are $75,000 a year. The user was considering the variable percentage withdrawal (VPW) method—about 5.1% annually—which would bring in around $85,000 per year. But they weren’t confident their parents fully understood how much they were spending. That uncertainty sparked interest in annuities: fixed income, no surprises, and peace of mind—especially for a couple with a 15-year age gap. Some Reddit users backed the VPW method, while others pointed out that annuity rates in 2025 have climbed to over 5%, making them a more attractive option. A $500,000 immediate joint annuity could bring in $28,000 to $30,000 per year, pushing the couple’s total income to nearly $100,000 annually. Still, annuities come with trade-offs: reduced liquidity, less flexibility for emergencies, and usually nothing left for heirs. If the couple prioritizes guaranteed income and simplicity over control and legacy, an annuity might make sense. Otherwise, careful planning with VPW and better budgeting could also keep them on track.