Tag: annuity puzzle
The Trump administration wants more annuities in your 401(k). Here is why it might be a mixed bag. When economists say that they have a puzzle, they don’t mean the kind with 1,000 pieces. Instead, economists are puzzled by things that don’t line up with their theories of how the world should work. One prominent…
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…
