Tag: annuities

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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…

Senior couple talking with financial advisor while using laptop during the meeting.

The rate of ownership of annuities in the United States is low, with only about 10 percent of older Americans having a commercial annuity.  Researchers have offered many potential rationales as to why people approaching retirement have so little interest in annuities.  However, a largely overlooked issue is how financial professionals view annuities and how…