Tag: annuities
For several years before the pandemic, everyone became complacent about an inflation rate hovering reliably around 2 percent. We were jolted from our torpor by the COVID spike in inflation to nearly 9 percent. Although inflation has come down sharply, the 3 percent rise over the past year is still above pre-pandemic levels. Higher…
Although many economic models predict high annuitization rates, only a small portion of retirees hold an annuity. This discrepancy is known as the “annuity puzzle.” Many explanations have been advanced for this puzzle, all of them promoting reasons why individuals might not want to annuitize. This brief, which is based on a recent paper, analyzes…
