New Booklet Advises on Annuities

August 28, 2001( - Two financial groups have released a new educational booklet about annuities that includes estimates of how large an annuity product different kinds of people might need.

The release comes as a recent poll by one of the groups found that less than half of women questioned even knew what annuities were. A simple multiple-choice question about the definition of an annuity stumped 43% of women and 38% of men.

Publishing the booklet, Making Your Money Last for a Lifetime: Why you need to know about Annuities, were the Women’s Institute for a Secure Retirement (WISER) and the Actuarial Foundation. WISER also sponsored the survey.

The booklet covers:

  • how annuities work
  • how they may be useful for singles, couples and those who have lost a spouse
  • how much of an annuity readers might need.

Middle Income Respondents Have Lower Annuity Knowledge

The WISER survey also found that that only 45% of those with household incomes under $35,000 could correctly identify an annuity versus 70% of those with household incomes greater than $35,000.

The survey, conducted by KRC Research, contacted 1,000 adults ages 18 and over in early August.

– Camilla Klein                 

The annuity booklet is available on the Actuarial Foundation’s Web site .