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Automatic Lifetime Income as a Path to Retirement Income Security

A large body of research in economics indicates that life annuities are the most cost-effective way to provide guaranteed income that will last for as long as an individual lives and that, as a result, annuities ought to play a central role in the portfolio of most retirees. In this paper, Jeffrey R. Brown, Ph.D. (University of Illinois) explores the use of annuities as the default distribution option in defined contribution plans and how such an automatic annuitization program could be implemented. Note: the views expressed in this paper are the views of the author and do not necessarily represent the views of ACLI or its member companies. Download the paper in PDF format.