Tag: annuities
Emergency expenses are eating up a lot of retirees’ money. A few months ago, a colleague asked me what I thought about annuities in 401(k) plans. Before Harvard reclaims my Ph.D., let me lay out the merits of annuities. Annuities are contracts that provide a stream of monthly payments in exchange for a premium. T…
The unpredictability of one’s lifespan is a major difficulty in retirement planning and provides the impetus for insurance products guaranteeing lifetime income. It is well known that this variance of longevity differs across demographic and socioeconomic groups, but the patterns of this variance over time have not been studied…
