3 ms·
In the UK you can buy an annuity with the proceeds of your pension fund at retirement. Is the same not true of a 401(k) in the US?
by tome 8y ago
In the UK you can buy an annuity with the proceeds of your pension fund at retirement. Is the same not true of a 401(k) in the US?
- AlexTWithBeard 8y agoThere's always a risk an annuity provider will go bust.
- jnwatson 8y agoThere's also a risk of a meteor hitting the earth. The likelihood is very low.
- rileymat2 8y agoYes, a variety of products exist in the U.S. But when I did limited research in the past, I found high fees and low returns.
- nradov 8y agoLow returns are inevitable for low-risk investments in a ZIRP environment. This is not an argument in favor of pensions.
- sillypuddy 8y agoYes, they're available. They're are also used to compare how much a fixed pension would cost in present dollars.