Expert explains why people don’t buy annuities
October 1, 2014 by Michael Finke
Finding out why people don’t buy annuities is a tempting subject for a policy addict like Jeffrey Brown, a finance professor at the College of Business at Illinois. And the new defined contribution era adds to the urgency of understanding why so many retirees don’t buy annuities. The baby boom generation is the largest American cohort in history, and they will be the first to fund retirement through a defined contribution savings system. How this generation chooses to spend down these assets will have a big impact on their own welfare and on the younger generations who will need to support them in old age.