Fact Sheet: The NRRI and Annuities

The Fact Sheet’s key findings are:

• The NRRI assumes that households buy an annuity at retirement.
• The NRRI (the percent of households ‘at risk’ in retirement) increases from 51 percent to
  • 53 percent if households withdraw 4 percent per year; or
  • 60 percent if households live off their interest.
• Not annuitizing hurts high-income households the most, because they rely more on their nest eggs in retirement.
• While few buy annuities today, annuities could improve retirement security for future retirees.