February 2011
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.
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