The unpopularity of annuities seems like a direct consequence of loss aversion, which says losses are more psychologically powerful than equivalent gains. [1]
If I trade $100k in savings for an annuity, I'm starting off at a deep "loss", which becomes a "gain" only at some point in the uncertain future. Not surprising that most people won't take that bet.
If I trade $100k in savings for an annuity, I'm starting off at a deep "loss", which becomes a "gain" only at some point in the uncertain future. Not surprising that most people won't take that bet.
[1] https://en.wikipedia.org/wiki/Loss_aversion