annuitize

Deferrals should be granted only to people who eventually "annuitize" - that is, convert their nest eggs into a lifetime retirement income.

The Boom In Annuities 2008

Deferrals should be granted only to people who eventually "annuitize" - that is, convert their nest eggs into a lifetime retirement income.

The Boom In Annuities 2008

"annuitize" - that is, freeze the investment in time and take it out in drips and drabs.

Piece Of Mind 2010

Peter Diamond argued that seniors should annuitize more of their income, and that Social Security is a good thing because it forces them to do so.

Inappropriate Annuities, Arnold Kling | EconLog | Library of Economics and Liberty 2009

So, on the one hand the government forces senior citizens to annuitize their income through Social Security.

Inappropriate Annuities, Arnold Kling | EconLog | Library of Economics and Liberty 2009

If SS forces them to annuitize 40%, and optimal is 50%, SS is a good thing, by the rather paternalistic logic both the SEC and Mr. Diamond are using.

Inappropriate Annuities, Arnold Kling | EconLog | Library of Economics and Liberty 2009

The SEC is saying that some firms are getting seniors to annuitize, say, 80-100%, which the SEC thinks, in their paternalistic wisdom, is too much.

Inappropriate Annuities, Arnold Kling | EconLog | Library of Economics and Liberty 2009

I believe the SEC's warnings are against aspects of variable annuities that don't touch on Diamond's general argument that people should annuitize a greater share of their retirement savings.

Inappropriate Annuities, Arnold Kling | EconLog | Library of Economics and Liberty 2009

The SEC/NASD report says that seniors should not necessarily annuitize their income.

Inappropriate Annuities, Arnold Kling | EconLog | Library of Economics and Liberty 2009

Let's say the typical senior would annuitize 25%, but a few would annuitize more.

Inappropriate Annuities, Arnold Kling | EconLog | Library of Economics and Liberty 2009