You want to know how to sell more annuities? You do it by selling less of them. At least that’s the way it sounds if you read a new study about to be published in the Journal of Public Economics.

Here’s the deal. For some reason, those fellows in ivy-covered halls seem to think it’s in the mathematically calculated best interests of retirees to annuitize their savings rather than take a single lump-sum payment. In real life, the vast majority of retirees – assuming they even have the option to annuitize – would rather go through the headaches associated with a considerable amount of paperwork just to avoid annuitization. Government regulators believe this lack of adoration for annuities is a problem.

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