In short the answer is yes, no, and maybe. Not specific enough? That is because there so many variables when creating an income stream during retirement.
How much income do you need? What is the value of your current investments? Is it possible to create the income with a guaranteed income benefit rider? Is it possible to wait to activate the rider and use an immediate annuity for the first 5 years or more? Do you need regular income or are you going to withdraw here and there as necessary?
These are just a few of the questions that need to be answered for your specific financial situation. In theory, it is possible to not use the immediate annuity for your annuity ladder. Why does it matter?
With an immediate annuity you lose access to principal. They are typically used for the first 5 years of income in conjunction with an annuity ladder. Immediate annuities are also the biggest deterrent for most investors that consider the annuity ladder because of loss of access to principal. Do you want to lose access to a chunk of your principal? No way! And now you don't have to lose access to any of your principal.
Annuity laddering is the single most effective way to guarantee income in retirement at the highest possible levels. Now you don't have to lose access to any of your principal! To learn more about how annuity laddering and guaranteed income streams are created read - Fixed Indexed Annuities, Annuity Laddering, And Guaranteed Income
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