At Retirement, Would You Pick $500,000 Payout or $2,700 a Month for Life?

At Retirement, Would You Pick $500,000 Payout or $2,700 a Month for Life?

According to a TIAA survey reported Thursday, 51% of all employers thought their workers would prefer to receive $2,700 a month for life rather than a $500,000 lump sum at retirement. They appear to be right. An earlier TIAA study showed that 62% of employees would make the same choice.

Nonprofits in the new poll were twice as likely as corporate, for-profits to believe their employees would prefer monthly lifetime income over a lump sum.

However, the reality for employees is that few have access to guaranteed options, TIAA said.Only 12% of the surveyed employers offered annuities as retirement income options […]

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