Tag: retirement income

Two groups of people shaped in puzzle pieces joining together

At any given time, only about half of U.S. private sector workers are covered by an employer-sponsored retirement plan. As a result, roughly one-third of households end up completely reliant on Social Security at retirement, while others move in and out of coverage throughout their careers and end up with only modest balances in a…

Finance, documents and senior couple on sofa with bills, paperwork and insurance checklist in home, life or asset management, Elderly black people on couch with financial, retirement or mortgage debt

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…