Enhanced Annuity Market Needed

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    Retiring baby boomers need better choices to protect against longevity risk, says a report by the C.D. Howe Institute. ‘Annuities and Your Nest Egg: Reforms to Promote Optimal Annuitization of Retirement Capital’ says to enhance retirees’ options, policy reforms should level the playing field for annuity products and promote market-driven variety of choice, thus ensuring retirees have at least some funds available to them for the long haul. Author of the report, Norma Nielson, chair in insurance and risk management at the Haskayne School of Business, says “During this life phase, important choices must be made about how much cash we need to live on in the near term and how long we should make our savings last, taking increased life expectancy into account. We need an enhanced, efficient annuity market with diverse products to deal with that risk.”