[20060518]RS22439_退休年金市场.pdf

1 The original author of this report is Neela Ranade, but it has been updated by Bob Lyke.Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code RS22439Updated May 18, 2006The Market for Retirement AnnuitiesNeela K. Ranade Chief ActuaryDomestic Social Policy DivisionSummaryA retirement annuity allows an individual to purchase a regular payment streamfrom an insurance company to last his lifetime. Despite the ability of the product toeliminate the risk that a retiree will outlive his assets, few retirement annuities have beensold in the individual market. In addition, the number of individuals who annuitize theirdefined contribution retirement plan balances remains small. New products areemerging that would offer alternate annuity designs and make annuity prices moreattractive. Legislation has been proposed in the 109th Congress that would enhance thetax treatment of annuities and encourage the growth of stand-alone annuity andcombined annuity and long-term care products. This report1 will be updated aswarranted.Types of Annuities. An annuity is a contract made by an insurance company inexchange for a sum of money to make