Insight: Stock Market Returns and Annuitization

By Julie M. Anderson

Insight Overview

Consumers should be aware that recent stock market returns could be influencing their decision whether to annuitize their retirement savings. Annuity plan providers should consider the effects of recent stock returns when they promote annuities, especially in light of the commonly held belief that individuals should guard against the risk that they will lose money if the value of stocks they own declines as they age. When designing policies that encourage annuitization, policymakers need to take into account the effects of recent stock returns on the individual’s decision to annuitize; this effect is especially significant among older consumers.

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About the Author:

JULIE M. ANDERSON, MBA, MPP, is the founder and a principal of AG Strategy Group, a strategic consulting and writing services firm. Previously, she was the Chief Operating Officer and a Managing Director at Civitas Group, as well as an Associate Partner at IBM Global Business Services. Anderson has served as Acting Assistant Secretary and Deputy Assistant Secretary for Policy and Planning at the U.S. Department of Veterans Affairs. Anderson earned her Master of Business Administration from Duke University, has a Master of Public Policy from the University of Chicago, and is a graduate of Nebraska Wesleyan University in Lincoln, where she was named a Harry S. Truman Scholar.

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