A new EBRI analysis shows purchases of a deferred income annuity at age 65 (deferring 20 years with no death benefits) result in an overall improvement in retirement readiness when purchasers annuitize 5%, 10%, 15%, and 20% of their 401(k) balance.
Instead, pre-retirees are looking to add savings from 401(k) funds, IRAs, and even annuities.
But less than half are willing to do the same for better health care benefits, Willis Towers Watson learned in a survey.
While 80% of investors say their adviser discusses risk tolerance, only 50% say they bring up the subject of guaranteed lifetime income.
The Employee Benefit Research Institute’s (EBRI) 28th annual Retirement Confidence Survey (RCS) finds the share of employees who feel very confident in their ability to live comfortably in retirement remains low at just 17%.