Few Purchase Annuities as Retirement Nest Egg Hedge

A third of those responding to a new survey worry about outliving their retirement nest egg, but only one in five plan to buy an annuity or other guaranteed income product.

A news release from the Society of Actuaries (SOA), which sponsored the poll, said 48% of respondents ages 45 to 70 have a financial plan in place to help guard against running out of money in retirement and pay for retirement health care.

Seventy-one percent said they plan to claim Society Security benefits before they reach 70 years old, the release said.

Three-quarters (75%) of respondents ages 45-70 protect their tangible assets, such as housing, through home or renter’s insurance; however, only 19% plan to insure the extra costs of disability and well-being by purchasing long-term care insurance.

The findings are based on a nationally representative online survey of 1,006 individuals, ages 45-70. More information about the SOA is at www.soa.org.