RT Journal Article SR Electronic T1 Employee Opinions about Partial Annuitization in a Retirement Plan JF The Journal of Retirement FD Institutional Investor Journals SP jor.2021.1.095 DO 10.3905/jor.2021.1.095 A1 Michael Finke A1 Jason J. Fichtner YR 2021 UL https://pm-research.com/content/early/2021/10/23/jor.2021.1.095.abstract AB Prior research finds mixed evidence of annuity preference among workers. In a survey of participants in an employer-sponsored retirement savings plan, the authors found that nearly twice as many prefer a mix of annuitized income and investments to a system that offers only investments or only a pension. When given a choice to allocate savings among stocks, bonds, and an income annuity, respondents would place 33.5% of their total retirement savings in an income annuity, and higher annuity allocations are preferred by older and average-income respondents. The most important attribute of a retirement savings plan is the ability to understand how much a retiree can safely spend. Eighty-one percent of participants indicate that they are somewhat or highly likely to prefer a retirement plan that substitutes guaranteed income for bond investments. The peace of mind offered by a product that provides a guarantee of lifetime income, the reduced fear of outliving savings, and the ability to budget spending in retirement are the most frequently cited reasons for preferring an annuity.Key Findings▪ Nearly twice as many participants prefer a mix of annuitized income and investments to a system that offers only investments or only a pension.▪ Respondents would allocate an average of 33.5% of their total retirement savings to guaranteed lifetime income, and higher allocations are preferred by workers near retirement with incomes between $50,000 and $100,000.▪ The peace of mind offered by a product that provides a guarantee of lifetime income, the reduced fear of outliving savings, and the ability to budget spending in retirement are the most frequently cited reasons for preferring an annuity.