Tag: annuity

person's hand putting coin into piggy bank next to decreasing sized coin stacks

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…

Senior man in workshop sitting and thinking

Introduction  Since 1965, academics have argued that individuals should annuitize a large part of their wealth.  However, for nearly as long, studies have documented that annuitization rates fall far short of what seem to be optimal levels.  Researchers have proposed multiple explanations for this potentially sub-optimal outcome. This brief, based on a recent study, assesses…