Get free help preparing your taxes from AARP Foundation Tax-Aide. Find a location




Contests and

AARP’s Superstar
2015 Contest

Sing for a chance to win $5,000! Enter AARP’s Superstar 2015 Contest!
See official rules.

Free Fun!

AARP Games - Play Now!

PROGRAMS & resources

Best Employers for Workers Over 50

Check out the winners list and latest news about this AARP recognition program.

Employer Resource Center

Attract and retain top talent in a changing workforce.

Your Own Business

Information for business owners, entrepreneurs and the self-employed.


Learn From the Experts

Sign up now for an upcoming webinar or find materials from a past session. 

Most Popular


Older Americans' Ambivalence Toward Annuities

The decline of the traditional defined benefit (DB) pension and the rise of the 401(k) plan has shifted the burden of deciding how the retirement nest egg should be distributed onto millions of retirees, substantially increasing their risk of running out of money in old age. Annuitizing some or all of the assets in a 401(k) can help reduce longevity risk and investment risk.

This report presents data from an AARP survey that canvassed 1,750 older workers and 670 retirees with either a pension plan or an individual retirement account about their distribution decision. The survey found that annuities are more popular than many observers have thought. In addition to participants receiving an annuity automatically from their DB plan, 30 percent of workers and 41 percent of retirees planned to choose or had actively chosen a life or other type of annuity. Older workers who could not or would not choose an annuity expressed moderate interest in a more flexible arrangement, such as partial annuitization, gradual annuitization, or a trial arrangement. Retirees were less interested.

The survey’s finding of greater than expected interest in annuities is encouraging. However, annuitization remains uncommon among 401(k) plan members, so that many retired Americans, especially women, are at risk of exhausting their nest egg. Reducing underannuitization should be a top policy priority.

Topic Alerts

You can get weekly email alerts on the topics below. Just click “Follow.”

Manage Alerts


Please wait...

progress bar, please wait

Tell Us WhatYou Think

Please leave your comment below.

Jobs You Might Like

Discounts & Benefits

From companies that meet the high standards of service and quality set by AARP.

UPS Store membership discount aarp benefits

Members save 15% on eligible products/services, 5% on UPS shipping at The UPS Store®.

membership adt

Small business owners save 20% on new installation of any new ADT security system.

Man using cell phone outdoors

Members save on monthly service & usage fees and get free activation with Consumer Cellular.

Member Benefits

Renew today! Members receive exclusive member benefits & affect social change.

Advance your skills. Transform your career.

Explore your learning possibilities.