年金化不足的神话：退休后的收入和资产管理（pdf）

A PRIL 2020 Note: This white paper draws from and updates: Sarah Holden and Shannon Salinas, “Lifetime Income Solutions as a QualifiedDefault Investment Alternative (QDIA),” Statement of the Investment Company Institute Before the ERISA Advisory Council(August 15, 2018); available atwww.ici.org/pdf/18_erisa_qdia.pdf. The Investment Company Institute (ICI) is the leading association representing regulated funds globally, including mutualfunds, exchange-traded funds (ETFs), closed-end funds, and unit investment trusts (UITs) in the United States, and similarfunds offered to investors in jurisdictions worldwide. ICI seeks to encourage adherence to high ethical standards, promotepublic understanding, and otherwise advance the interests of funds, their shareholders, directors, and advisers. ICI’s membersmanage total assets of US$24.1 trillion in the United States, serving more than 100 million US shareholders, and US$7.7 trillionin assets in other jurisdictions. ICI carries out its international work through ICI Global, with offices in London, Hong Kong, andWashington, DC. Copyright © 2020 by the Investment Company Institute. All rights reserved. Contents 1Key Findings2Research Does Not Support the Premise That American Workers Need More of TheirRetirement Income in the Form of an Annuity2Research on the Annuitization Decision Has Evolved to Incorporate a Broader Range ofHouseholds’ Concerns 4Retirees Manage a Range of Resources in Retirement and Typically Do Not NeedAdditional Annuitization 4Comprehensive Retirement Resources6Social Security Is a Strong Base6US Households Are Highly Annuitized7Analysis of Comprehensive Household Wealth Finds High Levels of Annuitization9Data Show That a High Percentage of Retiree Income Comes from Annuity Streams 10To Increase Annuity Income: Consider Delaying Social Security 10Delayed Claiming Increases Annual Social Security Benefits11Market-Priced Annuities Are Not Actuarially Fair12Delayed Social Security Claiming Maximizes Annuity Income 13Rainy Day Funds Are Also Important 13Households Want Access to Resources in Case of Unexpected Needs14RMDs Provide a Reasonable Distribution Plan While Preserving Access to Liquidity 15Stewardship of Retirement Accumulations 15Majority of Terminating DC Plan Participants Preserve Assets18IRA Investors Spend Down Their Balances Responsibly18Worker Mobility Makes Annuitization Within DC Plans Problematic21Americans Value Flexibility and Choice with Regard to Annuitization at Retirement 23Annuitization Will Not Solve Low Lifetime Resources 23Conclusion The Myth of Under-Annuitization:Managing Income and Assets inRetirement Key Findings Americans’ retirement security has many components. These components complementeach other, and retirees manage both assets and income in retirement. With the growthof defined contribution (DC) retirement plan assets, some policymakers have consideredpromoting the offering and use of annuities in DC plans. The underlying premise behindsuch policies, that most Americans are under-annuitized and that promoting theannuitization of DC plan account balances would benefit American retirees, is incorrect. Therelevant research and data show that: »Retirement resources, which allow workers to reallocate lifetime resources fromtheir working years to their retired years, should be thought of comprehensively.»The US retirement resource pyramid has a strong annuitized base, Social Security,which is progressive and provides high replacement rates for lower-income workers.»When including all retirement resources, it is clear that the majority of near-retireeUS households are highly annuitized outside their DC plans.»Individuals entering retirement who need more annuity income should first considerdelaying claiming Social Security before purchasing an annuity in the market.»In addition to regular income, most households want access to resources in timesof unexpected need, and required minimum distributions (RMDs) are a responsibleway to produce a lifetime income stream while still maintaining access to theaccount balance.»Most retirement savers steward their accumulations to and through retirement.»Households having difficulty in retirement typically had difficulty while working, andpromoting annuitization will not solve the problem of limited lifetime resources. Research Does Not Support the Premise That AmericanWorkers Need More of Their Retirement Income in the Formof an Annuity The underlying premise of those promoting lifetime income in DC plans is that mostAmericans are under-annuitized and that promoting annuitization of retirement accountbalances would benefit American retirees. This premise rests in part on research thatuses simplified economic models to predict that individuals should annuitize all wealth atretirement. The supposed “annuity puzzle” arises because, contrary to these predictions,few households choose to purchase annuities. This white paper provides evidence that the underlying pr