People still don't buy annuities, even though they should

Standard economic models predict that people should buy annuities to guarantee income for life, but few actually do. This paper looks at why people avoid them and what might encourage more uptake.

For decades, economists have wondered why people don't buy annuities, which protect against outliving savings. This paper confirms that the 'annuity puzzle' is still a problem, even with new financial products. It means many people will still struggle to manage their money through retirement.