How distribution choice drives retirement impact: lump sums vs. annuities
Lump sums being depleted quickly
Retirees who received a lump sum report an average remaining balance of around $100,000
1 in 5 retirees who took a lump sum have already depleted it, with an average depletion time of 4.4 years1 and should be interpreted as directional only
1 Results based on small bases (N=50–99)
The MetLife 2026 Paycheck or Pot of Gold Study highlights important trends in how retirees approach lump sum withdrawals and guaranteed income options. Retiree findings show that those who take lump sum withdrawals typically deplete their savings in about 4½ years, and around half of those with remaining funds worry they will run out. In contrast, retirees receiving guaranteed monthly income report much greater stability, with nearly all annuity recipients expressing satisfaction and stating benefits such as easier budgeting and predictable income.
The findings below outline key differences between retirees who chose lump sums versus those who selected an annuity.
Lump sum outcomes for retirees
Annuity outcomes for retirees
Depletion causing financial hardship
Half of retirees (51%)1 who depleted their lump sum report financial hardship
Nearly all who have nothing left and experienced a financial hardship (98%)1 say additional retirement income could have prevented it
1 Results based on small bases (N=50–99)
First-year spending causing regret
61% of lump sum retirees who made a major purchase in their first year had regrets spending the money
54% gave away a sizable portion of their lump sum money, and those that did, around half (55%) regret doing so
46% wish they had chosen an annuity (when offered)
Annuitants believe they are better off financially
90% of retirees with an annuity feel financially better off receiving regular monthly payments rather than a lump sum
89% also report greater flexibility to pursue more aggressive investment strategies with their other assets
Annuities offer financial stability and predictability
93% say it makes it easier to pay for basic necessities
92% say they help create more predictable budgets
86% say a monthly “retirement paycheck” is very important or essential for paying bills
1 Results based on small bases (N=50–99)
High annuity satisfaction
Nine in 10 (93%) annuity retirees are happy with their decision to take monthly payments, noting it boosts financial security (94%) and offers peace of mind (92%)
1 Results based on small bases (N=50–99)
helping our retirees make decisions with confidence
The value of guaranteed monthly income
Together, these findings highlight the critical role that predictable, guaranteed income can play in helping retirees maintain long‑term financial stability.
Read the full study for more insights: metlife.com/2026paycheckstudy
All data is from the MetLife 2026 Paycheck or Pot of Gold Study unless otherwise noted.
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