How Retirees Manage Retirement Savings for Retirement Income
Since annuitants and non-annuitants share the same top financial priorities—each of which is addressed by annuitization—why do some retirees choose to annuitize while others do not?
How do retirees with significant assets in tax-qualified retirement accounts convert their savings into income during retirement? What factors influence their decisions? This study addresses these and related questions, and also examines the similarities and differences between retirees who annuitize at least some of their savings and those who do not.
The researchers surveyed 1,000 retirees, age 60 or older, who had at least $400,000 in defined contribution accounts and/or IRA assets and no defined benefit pension income. Half the respondents were receiving annuitized payments and half were not.