We all tend to think we are smarter than average. ("I won't make investment mistakes and end up with no money"), and we tend to think we are luckier than average ("I won't lose the capacity to manage my money later").
Most investment decisions are made by men, who take more risks than women generally , and since we typically die first , leave the problem (and it is a big problem) to our wives and ( perhaps) children.
Our thoughts are dominated by; confirmation bias("annuities are a bad deal, so I can hang on to more of my money").
Then we have superiority bias("I have done an exceptional job so far with my money"), and lastly, recency bias (I have done an exceptional job so far with my money so it will work out"), all of which conspire against buying an income annuity. Yet making a mistake here means that retirees (or more likely -just the widow) will be flat broke at a time of extreme vulnerability.
That outcome should simply be unacceptable to most people, especially since it can be prevented.
I want to guarantee that, that can not happen- not just a chance.
Deciding otherwise would require that I depend on luck. I might win? But to my way of thinking , the costs of failure are simply too high to pay.
Moreover, anything that can be used to help people plan for a better retirement and to make better choices with their money is a good thing.
Tim Paap