<p>This paper presents a formal analysis of efficient investment strategies for individuals facing long-term care risk in the decumulation phase of their life-cycle. Our main contribution is to develop a comprehensive and flexible framework for providing personalized advice for retirement investment decisions that integrates two important dimensions: (1) an investment universe incorporating balanced funds but also immediate and variable annuities, (2) the presence of both longevity and life event risks. Our main finding is that the presence of long-term care risk strongly reduces the optimal demand for annuities for most individuals. This result suggests that the costly reversibility of annuitization decisions can contribute to explaining the annuity puzzle for individuals facing life event uncertainty. We also find that the introduction of annuity products with upside potential (e.g., variable annuities) has a strongly positive impact on both investor welfare and the demand for annuitization.</p>