How much do people value annuities and their added features?

Arapakis, Karolos, and Gal Wettstein. “How much do people value annuities and their added features?”. Issue in Brief 2024-1, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, January 2024. http://hdl.handle.net/2345/bc-ir:109881.
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Abstract

The brief's key findings are: (1) While annuities offer retirees a reliable stream of lifetime income, few people purchase them. (2) To probe people's perceptions of annuities, a new survey queried those near or in retirement with over $100,000 in financial assets. (3) About half of respondents say they would be willing to buy an annuity at prevailing market rates, while just 12 percent actually do so. (4) 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. (5) 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.

Title
How much do people value annuities and their added features?
Author
Arapakis, Karolos
Wettstein, Gal
Center
Center for Retirement Research
Genre
report
Date Issued
January 2024
Publisher
Center for Retirement Research at Boston College
Series Title
Issue in Brief
Series Number
2024-1
Persistent Link
http://hdl.handle.net/2345/bc-ir:109881
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing Retirement

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