The Market for Retirement Annuities

Ranade, Neela K.

Library of Congress. Congressional Research Service.

关键词: Pensions;    Retirement income;    Annuities;   

RP-ID  :  RS22439
RP-ID  :  RS22439_2006May18

美国|英语

来源: UNT Digital Library

【 摘 要 】

A retirement annuity allows an individual to purchase a regular payment stream from an insurance company to last his lifetime. Despite the ability of the product to eliminate the risk that a retiree will outlive his assets, few retirement annuities have been sold in the individual market. In addition, the number of individuals who annuitize their defined contribution retirement plan balances remains small. New products are emerging that would offer alternate annuity designs and make annuity prices more attractive. This report discusses legislation has been proposed in the 109th Congress that would enhance the tax treatment of annuities and encourage the growth of stand-alone annuity andcombined annuity and long-term care products.