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|Subject: People are smarter than I thought||Date: 1/29/2010 4:22 PM|
|Author: intercst||Number: 66717 of 72280|
Interesting article in NY Times that says Obama wants more people to buy a Single Premium Immediate Annuity to secure their retirement. Of course the insurance industry thought this was an excellent idea, but the large hidden expenses of even so-called "low-cost" annuities make them bad deals for almost everybody.
Meanwhile, almost all employees on the precipice of retirement who have access to annuities as a payout option steer clear when their companies offer them. While various surveys show that roughly 15 to 25 percent of corporations offer annuities to workers who are retiring, including big employers like I.B.M., a 2009 Hewitt Associates study reported that just 1 percent of workers actually bought one.
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