Tag: annuity
Understanding how long we might live can influence important decisions, such as how much to save or whether to buy an annuity. Yet, many people underestimate their chances of living to older ages, which may lead them to save too little and avoid annuities, potentially reducing their financial security in retirement…
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…
