Tag: Social Security bridge

Bird's eye view of bridge

The brief’s key findings are: As an alternative to annuities, retirees could use a portion of their 401(k) assets to delay claiming Social Security, effectively buying more lifetime income. To gauge interest in this unfamiliar option, an experiment tested ways to present the bridge, including through an insurance frame or as a default. The results…

Senior man working at laptop at home

Abstract Although annuities would ensure higher levels of lifetime income, reduce the likelihood that people will outlive their resources, and alleviate some of the anxiety associated with post-retirement investing, the market for annuity products is minuscule. Explanations for the low demand include the high cost of private annuities due to adverse selection, a reluctance to…