WHO SHOULD PURCHASE VARIABLE ANNUITIES AND HOW SHOULD THEY USE THEM?
By Leora Friedberg, Guoxuan Ma, Wei Sun and Anthony Webb
Research Overview
Retirees face significant financial risks, including outliving their resources and poor investment returns. Immediate annuities can mitigate these risks by providing a lifetime income in exchange for a lump sum. Despite their benefits, uptake of immediate annuities remains low, a phenomenon known as the annuity puzzle. Research explores common financial decision-making mistakes and the appeal of leaving bequests as potential explanations. Discover more about this intriguing issue and the potential solutions.
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About the authors:
- Leora Friedberg is Associate Professor of Economics
and Public Policy at the University of Virginia. - Guoxuan Ma is Assistant Professor of Economics in
the Research Institute for Global Value Chains at the
University of International Business and Economics - Wei Sun is an Associate Professor at China Financial
Policy Research Center and School of Finance, Renmin
University of China. - Anthony Webb is Senior Fellow at the Schwartz Center
for Economic Policy Analysis, The New School.