Two-thirds of US defined contribution (DC) plan participants say that a secure retirement income stream is the most important feature they’re looking for, as we noted in our seventh annual survey report. But US workers rarely convert their retirement savings to lifetime income by purchasing a traditional fixed annuity. What’s standing in the way?
Roughly 90% of defined contribution (DC) savers in the UK still buy fixed-rate immediate annuities at retirement. Does this make sense for UK workers, and is there a lesson to be learned for the US? (more…)