‘Survival pessimism’ dulls the appetite for annuities
November 11, 2020 by Editorial Staff
Those in their early 60s underestimate the chance of survival to 75 by more than 25 percentage points, on average, and those in their early 70s underestimate survival to age 85 by more than 15 percentage points, new research shows.
Add “survival pessimism’—not expecting to live very long in retirement—to the list of reasons (along with high costs, illiquidity and complexity) why relatively few older people buy life annuities, according to a new working paper from the National Bureau of Economic Research.
Originally Posted at Retirement Income Journal on November 6, 2020 by Editorial Staff.
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