Anticipating "Lumpy" Expenditure Needs

As indicated in previous posts, I believe it is not unreasonable to manage risks in retirement by diversifying sources of retirement income.  This article discusses research that explains why individuals are "more likely to select an annuity option when a 'partial' option is offered instead of an 'all or nothing' option."  I especially liked the comment from one of the researchers who said, “If you anticipate lumpy expenditure needs in retirement (e.g., out-of-pocket medical expenses), you want some liquid wealth to cover those expenses."