Wow, more good news on the annuity front.
In an article by Bob Seawright, chief investment and information officer at Madison Avenue Securities, economists are cited in the great annuity debate.
According to Seawright, “economists have recognized that retirees should convert far more of their assets into an income annuity at retirement than they do.”
Further, he cites Nobel Prize winner Franco Modigliani, who, in his 1985 acceptance speech said, “it is a well-known fact that annuity contracts, other than in the form of group insurance through pension systems, are extremely rare. Why this should be so is a subject of considerable current interest. It is still ill-understood.”