I would say longevity risk. Very difficult to address longevity risk effectively without the use of pooling / insurance. Mortality yield or mortality credit can provide economic benefits that are very difficult to replicate otherwise.
Also, longevity risk is such a huge, sleeper kind of risk facing almost all retirees these days.
tom replied on Permalink
Top Reason to Buy an Annuity
Great question.
Opinions vary of course.
I would say longevity risk. Very difficult to address longevity risk effectively without the use of pooling / insurance. Mortality yield or mortality credit can provide economic benefits that are very difficult to replicate otherwise.
Also, longevity risk is such a huge, sleeper kind of risk facing almost all retirees these days.
Anonymous replied on Permalink
Top Reason to Buy and Annuity
OK, how about the next best reason?
tom replied on Permalink
Top Reasons to Buy an Annuity
If longevity risk is the top spot, sequence of returns risk would be a relatively close second.
Anonymous replied on Permalink
Case for Annuities
Interesting article in the Wall Street Journal that discusses the "case for annuities":
http://online.wsj.com/article/SB1000142405274870395400457608976166077334...