Tag: annuity
A longstanding puzzle in the economics of insurance, household finance, and public policy is why so few individuals annuitize their wealth. This paper describes results from a recent survey of people with investable assets over $100,000 that included a randomized control trial module eliciting individuals’ valuations for a simple immediate annuity, as well as whether…
The brief’s key findings are: Few people buy annuities, which has long puzzled researchers. This study assesses the relative importance of two potential reasons for this low demand: annuity prices are based on the longer objective life expectancy of those who buy them, making them expensive for others; and people in their 50s and 60s are too…
