Buy an annuity, live longer

[walkinwood]

Interesting research

Freakonomics » How to Live Longer: a New Marketplace Podcast

Quote:

DUBNER: Yes. It’s a financial instrument you buy that pays off a set amount each year – but only as long as you stay alive. So it’s like a “longevity lotto,” right? Research shows that people who buy annuities tend to live longer – and not just because they are the kind of people that have the money to buy annuities to start with. It’s apparently that little extra incentive of the annuity payout that keeps people going.

[GrayHare]

People who buy an annuity are a self-selected group, most of whom know whether longevity runs in their family.

[NW-Bound]

So, the premise is that the annuity payout gives people something to live for, trying to beat the system.

I couldn't help thinking of the parallel effect with SS. People are now living longer, trying to collect more. Then, this causes Medicare costs to increase as well. Not good!

To kill two birds with the same stone, suppose we take away SS, then the Medicare problem which is a lot bigger would go away too!

I shall log off now.

[fritz]

Quote:

Originally Posted by walkinwood Interesting research Freakonomics » How to Live Longer: a New Marketplace Podcast

DUBNER: Yes. It’s a financial instrument you buy that pays off a set amount each year – but only as long as you stay alive. So it’s like a “longevity lotto,” right? Research shows that people who buy annuities tend to live longer – and not just because they are the kind of people that have the money to buy annuities to start with. It’s apparently that little extra incentive of the annuity payout that keeps people going.

What a stretch!

[Alan]

Quote:

Originally Posted by fritz What a stretch!

I've heard that regular stretches help to prolong life.