Tag: longevity risk
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…
The gap between the desire for annuities and actual holdings likely due to logistical impediments. My colleagues, Karolos Arapakis and Gal Wettstein, have just published a really interesting paper on the “annuity puzzle.” That is, while economic models predict that many people would be better off with annuities, only a small portion of retirees actually…