Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

Betting On Getting To 80: Draw $40,000 A Year Forever, If You Don't Die First

Friday, July 4, 2014 - 9:43 AM
From Bloomberg:

Sharon Carson admits she just did something strange. At 49, she wrote a check to an insurance company for a product that won’t give her any financial benefit until she's in her 80s. Carson, a top executive in JPMorgan Chase’s retirement business, knows that buying a longevity annuity can pay off. On July 1, the U.S. Treasury pushed more savers to follow in her footsteps. Its new rules could allow the annuities, also known as longevity insurance, as an option in millions of Americans’ individual retirement accounts and 401(k) retirement plans.

The challenge: convincing savers to choose that option. The annuities thrill retirement experts and policy makers who see them as a way to ensure workers don’t end up impoverished in old age. Just about everyone else ignores the products, which make up less than 1 percent of all annuity sales.

Read more
4
pearlbrownpearlbrown1,465 posts since
Nov 2, 2010
Rep Points: 6,373
Reply