This report presents results of an experiment that explored ways to increase demand for annuities. The authors found that making a life annuity the default option (the option offered first) could substantially increase demand for these products. In addition, there may be an untapped market for longevity annuities, which are annuities where payments begin several years after their purchase. The further development of this product and the strategic use of default options could contribute materially to the financial security of Americans in old age.
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