For example, he says, if a participant wants to delay Social Security and needs a pay-out strategy to bridge the five years until he reaches 70, an immediate fixed-income annuity
State and local governments would be able to provide a traditional defined benefit pension plan as well as a deferred fixed-income annuity
contract, although individual employees would not be able to participate in both.
The standard annuity is a fixed-income annuity
. To receive a guaranteed $1,000 a month, a fixed annuity today would cost a 65-year-old man roughly $165,000 (about $175,000 for a woman because women usually live longer).