The Aspen Institute Initiative on Financial Security, “Retirement Savings: Confronting the Challenge of Longevity,” 2010-01-01
As the world of defined contribution retirement savings has grown, and with the potential vast expansion of private retirement savings through automatic IRAs, the majority of savers now nearing retirement and in the generations to come will have nest eggs, which they will have primary responsibility for managing during retirement. Annuities are traditional means for managing the risk of outliving savings in retirement. But annuities as an investment or distribution option are virtually absent from defined contribution plans. Outside of the plan universe, payout annuities have never been popular with mass market consumers and could be considered the cod liver oil of investment products — a product that may be good for you but hard to swallow and too often avoided.