As boomers start to retire, they’re confused about whether or not they want annuities—and the confusion stems not from old age but from a fear of losing control, according to results of studies from BlackRock and Harvard University released last week at a press briefing in New York.
Retirement income is a growing concern nationwide, but because retirees themselves don’t really know whether they do or don’t want a guaranteed income stream, employee 401(k) plan sponsors may become more responsible for helping people make that choice, the studies conclude.
Laibson delivered his remarks as part of BlackRock’s annual retirement briefing, where this year the world’s largest money manager shared the results of a survey of 1,002 employed workers as well as 1,035 “newly minted” retirees, whose average age is 67. Overall, the survey found that retirees who are actually living the experience and receiving income feel more secure than worried workers who fear they will never save enough money to retire.
The majority of retirees, 64 percent, strongly agree that their financial situation allows “having a choice not to work anymore,” while just 37 percent of workers strongly expect that their finances will allow such a choice, according to BlackRock’s 2012 survey of retirees and workers.