Preference for Immediate annuities: New research by EBRI shows that people at the bottom- and top-ends of the savings distribution (those with the least and most assets) are more likely to buy annuities than people in the middle of the savings distribution.
 
Possible explanations for such behavior could be:

• People at the bottom of the savings distribution are very likely to run out of money in retirement and thus are inclined to select annuities.
• People at the top end of the savings distribution expect longer lifespans and can afford annuities even after leaving a financial legacy for their heirs.
• People in the middle generally face more uncertainty about their retirement adequacy and so they are more likely to hold on to their savings for precautionary purposes and perhaps also for some hope of leaving a financial legacy for their heirs.

Regression results show that savings has a large positive effect on preference for annuities only for those in the highest savings category. The results also show clear preference for annuitizing smaller shares of assets or partial (rather than full) annuitization. MORE.

Upcoming EBRI Presentations

Feb. 28 - Paul Fronstin, FT Future of Healthcare Forum: Business Strategies and Solutions for a Shifting Landscape, New York, NY -- Keynote Interview
 
March 7 - Paul Fronstin, FLHCC 2017 Annual Meeting of the Board of Directors, Florida Health Care Coalition, Orlando, FL -- Topic: “Employment-Based Health Benefits: Where Do We Go From Here?”
 
April 24 - Paul Fronstin, Mid-Sized Retirement & Healthcare Plan Management Conference, University Conference Services, Baltimore, MD -- Topic: “Employment-Based Health Benefits: Where Do We Go From Here?”