How Much Do People Value Annuities and Their Added Features?

Karolos Arapakis and Gal Wettstein

Issues in Brief from Center for Retirement Research

Abstract: While annuities offer retirees a reliable stream of lifetime income, few people purchase them. To probe people’s perceptions of annuities, a new survey queried those near or in retirement with over $100,000 in financial assets. About half of respondents say they would be willing to buy an annuity at prevailing market rates, while just 12 percent actually do so. The study tested whether low annuity take-up could be explained by a lack of liquidity or the inability to make bequests, but found no such evidence. In short, people may be deterred not by a lack of interest in annuities but by a lack of knowledge of the product and how to buy it.

Pages: 7 pages
Date: 2024-01
New Economics Papers: this item is included in nep-age
References: Add references at CitEc
Citations:

Downloads: (external link)
https://crr.bc.edu/how-much-do-people-value-annuit ... ir-added-features-2/ R
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:crr:issbrf:ib2024-01

Access Statistics for this paper

More papers in Issues in Brief from Center for Retirement Research Contact information at EDIRC.
Bibliographic data for series maintained by Amy Grzybowski () and Christopher F Baum ().