Do Annuities Help Older Adults Manage Their Spending?

Brief

Do Annuities Help Older Adults Manage Their Spending?

Abstract

For the first time in history, many older Americans will likely retire with large stockpiles of money and will have to determine how to carefully manage these assets. Our study results suggest that converting retirement wealth into an annuity that guarantees a lifetime income may help retirees manage their spending and ensure they will not outlive their savings. This brief is related to the longer paper "Annuitized Wealth and Consumption at Older Ages."

Research Area: 

Cross-Center Initiative

Cross-Center Initiative: 
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