Why don't people insure late life consumption: An explanation of the under-annuitization puzzle

Under-annuitization is often a source of concern for those in the retirement industry. Survey results reported in this article explain that how annuities are communicated has a definite impact on how they will be regarded by potential customers. The authors analyze consumers' views of annuities using two different frameworks: consumption and investment. In their survey of 1,342 respondents, the authors made a special point of gauging reactions to the bequest motive, which has often been identified as an annuitization stumbling block.   (TIAA-CREF Institute, 23 Jul 2008, 12 pages)

• Why don't people insure late life consumption: An explanation of the under-annuitization puzzle (PDF)  (TIAA-CREF Institute, April 2008, Author: Brown, Jeffrey R. et al., 12 page(s))