>It sacrifices some returns to achieve that, but if you're retired or nearly so, it's a solid choice.

In that scenario, especially given a healthy nest egg, it absolutely makes sense to optimize locking in an income stream at the expense of limiting the upside. Once you have "enough" money close to retirement, it's mostly about not taking risks for potential gains that won't really benefit you.

For someone in a different situation, it will often make sense to go for higher average returns over time.

(All of which is pretty much bog standard financial planning advice.)