Annuities: The Good And The Bad

Abstract

This paper delves into the world of annuities and explores the problem of the annuity puzzle. Annuities are a retirement product that pay out a fixed stream of payments to an individual as opposed to a lump sum payment. However, this type of product is becoming increasingly unpopular as less individuals are choosing to invest in them. This paper looks at both the good and bad aspects of annuities in an attempt to answer whether or not annuities are a good investment option for individuals. The paper also offers a solution as to who should be investing in annuities and what changes can be made to annuity products in order to make them a better investment option for individuals.