When given the choice between a lifetime retirement income option — like an annuity — or taking a lump sum payout from their defined benefit pension plan, few consider the annuity.
That's according to the folks at the Employee Benefit Research Institute, who found that between 2005 and 2010, just 27.3 percent of those covered by a DB pension plan chose the annuity option.
Not surprisingly, the study found that plans that don't offer a lump-sum distribution have the highest annuitization rate of 65.8 percent.
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