Journal article
Registered index‐linked annuities in qualified retirement plans
The Journal of risk and insurance, Vol.92(3), pp.665-691
09/2025
DOI: 10.1111/jori.12505
Appears in UI Libraries Support Open Access
Abstract
Many Americans remain financially underprepared for retirement. While automatic enrollment in employer‐sponsored retirement plans has helped, target‐date funds (TDFs) used as default investments have limitations. We propose target‐date registered index‐linked annuities (TD‐RILAs) as a transparent, cost‐effective alternative providing decreasing equity exposure over time. A theoretical analysis explores TD‐RILAs' optimal structure and compares them to TDFs. A lab experiment examines investors' preferences, product transparency, default choices, and the role of information. We find that TD‐RILAs are a suitable addition to retirement plans, potentially rivaling TDFs.
Details
- Title: Subtitle
- Registered index‐linked annuities in qualified retirement plans
- Creators
- Cameron Ellis - University of IowaThorsten Moenig - Temple UniversityJacqueline Volkman-Wise - Saint Joseph's University
- Resource Type
- Journal article
- Publication Details
- The Journal of risk and insurance, Vol.92(3), pp.665-691
- DOI
- 10.1111/jori.12505
- ISSN
- 0022-4367
- eISSN
- 1539-6975
- Publisher
- Wiley
- Grant note
- TIAA Institute and Wharton School's Pension Research Council/Boettner CenterTIAA InstituteWharton School's Pension Research Council/Boettner CenterWestern Risk and Insurance AssociationUniversity of Minnesota
This project received funding from the TIAA Institute and Wharton School's Pension Research Council/Boettner Center. The content is solely the responsibility of the author(s) and does not necessarily represent the official views of the TIAA Institute or Wharton School's Pension Research Council/Boettner Center. We are grateful for comments from Alexandru Barbu, Manuel Metzger, Manuel Rach, Bobby Samuelson, participants at the 2023 TIAA Institute Fellows Symposium, and Seminar Participants at the American Risk and Insurance Association, the Western Risk and Insurance Association, and at the University of Minnesota. We also thank the editor and two anonymous referees for helpful suggestions.
- Language
- English
- Electronic publication date
- 01/29/2025
- Date published
- 09/2025
- Academic Unit
- Finance
- Record Identifier
- 9984787175902771
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