Employer-provided retirement benefits are most commonly distributed to workers in the form of an annuity, according to a new report.
The Public Policy Institute of the American Association of Retired Persons, Washington, D.C., published this finding in a study, “Older Americans’ Ambivalence Toward Annuities.” The study examines the results of an AARP survey of older workers and retirees respecting their choices for distributing retirement income. The survey polled 1,750 older workers ages 50 to 75 and 670 retired people ages 59 to 75.
The survey reveals that nearly 5 in 10 workers (48%) plan to receive an annuity, either one purchased from a life insurer or through an employer-provided pension plan. And nearly 4 in 10 (38%) expect to receive a life annuity, the survey says.
Additionally, nearly three in four workers (74%) are receiving, or expect to receive, income from an annuity. And six in ten (63%) are receiving income from a life annuity.