Tuesday, October 26, 2010

New CRR fact sheet: “The NRRI and Annuities”

The Center for Retirement Research at Boston College has released a new Fact Sheet:

"The NRRI and Annuities"

The Fact Sheet's
key findings are:

  • The NRRI assumes that households buy an annuity at retirement.
  • The NRRI (the percent of households 'at risk' in retirement) increases from 51 percent to
    • 53 percent if households withdraw 4 percent per year; or
    • 60 percent if households live off their interest.
  • Not annuitizing hurts high-income households the most, because they rely more on their nest eggs in retirement.
  • While few buy annuities today, annuities could improve retirement security for future retirees.

The Fact Sheet is available here.


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