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Annuities in a 401K world

Annuities have long been the basic building blocks of the U.S. retirement income system.  Both Social Security and traditional employer pensions are annuities, paying retirees a specified sum each month for as long as they live.  But due to the decline in Social Security replacement rates, for any given retirement age, and the shift in employer plans from defined benefit pensions to 401(k)s, a growing number of workers are entering retirement with more financial savings and less annuity income.  Read the research based article written by Steven A. Sass of the Center for Retirement Research at Boston College.