TY - JOUR T1 - Debt, Illiquidity, and Financial Illiteracy as Barriers to Annuity Ownership JF - The Journal of Retirement SP - 33 LP - 53 DO - 10.3905/jor.2022.1.124 VL - 10 IS - 2 AU - Hallie Davis AU - Andrea Hasler AU - Annamaria Lusardi Y1 - 2022/10/31 UR - https://pm-research.com/content/10/2/33.abstract N2 - This article examines individuals’ balance sheets, financial situations, and retirement planning steps to understand the barriers to annuity ownership and identifies the financial and sociodemographic factors that contribute to annuity ownership. Using data from the 2018 National Financial Capability Study, we conduct an empirical analysis of individuals in the retirement-planning phase of the life cycle (ages 40–61) and individuals of retirement age (age 62 and over). We find that debt obligations, lack of access to liquidity, and low financial literacy are all likely barriers to annuity ownership; the annuity owners in our sample are more likely than the non-owners to have access to liquidity and to report higher levels of financial satisfaction. Results indicate that access to liquidity and to professional investment management are positively associated with annuity ownership. Furthermore, financial literacy could lead to increased take-up rates through improved access to liquidity and ultimately enhanced retirement outcomes. ER -