Deferred Income Annuity Purchases: Optimal Levels for Retirement Income Adequacy
New research was prepared for this testimony to explore how the probability of a "successful" retirement varies with the percentage of the 401(k) balance that is used to purchase a deferred income annuity (DIA) Results are provided for all households (with a 401(k) balance) combined as well as by simulated age of death. The results are also provided by age specific wage quartiles.