Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Tuesday, August 19, 2014

Why Retirees Are Not Buying Annuities

Question3Annuities can be a beneficial retirement planning tool for avoiding the problem of the retiree running out of savings during retirement. However, annuities are not the focus for many senior citizens. Here are eight reasons annuities may be being underutilized.

  1. Annuities are often not part of the planning discussion with advisers
  2. Fear drives sales, and living longer than expected is not as scary as death
  3. Many retirees do not think their odds are good for outliving their retirement
  4. The possibility of high returns from gambling in the stock market instead is tempting
  5. The lower monthly payouts for women are discouraging, even though women will likely collect more checks as they have a longer life expectancy
  6. The sticker shock for couples’ annuities can be discouraging if the benefits are not fully understood
  7. The desire to have more assets to pass to the next generation rather than invest it all in an annuity
  8. It is necessary, but unpleasant, to consider living in severe poverty in order to plan against it

See, Eight Reasons Retirees Don’t Buy Annuities, Forbes.


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My first reaction when I read "gambling" in the stock market was: who wrote this, and what is their bias? Reading this slideshow, it also refers to "the current bear market", which leads me to ask: when was it written? The item carries neither a date nor an author.

Posted by: Sheila Hard | Aug 20, 2014 5:50:44 AM

If there was little reason to buy these creatures in a bear market, there is even less of one to buy in a bull. That fat commission is nothing but opportunity lost.

Posted by: brian | Aug 24, 2014 7:20:05 PM

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