Overview

• A study presented at a 2025 Consumer Research conference found that retirees expecting annuity payments were more likely to invest in health screenings and increase exercise intensity than those anticipating lump sums.
• Canadian researchers reported in 2024 that stable annuity income lowered retirees’ biological stress markers and reduced symptoms of depression.
• Four decades of declining defined benefit plans and weakened union coverage have left only about half of Americans aged 50 to 64 with retirement accounts averaging about $150,000 in savings.
• The commercial insurance industry faces adverse selection and moral hazard challenges that drive up annuity costs and deter adoption.
• The bipartisan Retirement Savings for Americans Act would simplify annuity products, guarantee monthly benefits for low and moderate-income workers and bolster Social Security funding.