There is a lot of economic and financial research that goes on regarding retirement and especially retirement outcomes. There are quite a few shocking revelations about retirement when you dive into the statistics. For example, one in five Americans have less than five thousand saved for retirement, and 21% have no retirement savings at all. The most shocking is that 46% of Americans are just guessing how much they need for retirement. This is obviously one of the major causes of running out of retirement funds. It also explains why the number one fear of American retirees is running out of money. Researchers seem to suggest that deferred annuities can help alleviate that fear and provide favorable retirement outcomes. They suggest that deferred annuities help hedge against the downside of a longer life than expected or budgeted for. The simple truth that most retirees do not consider is that expenses increase the older you get. The nasty mix of price inflation and healthcare costs can sink many retirement plans. The study determined that a deferred annuity should be used as insurance against running out of money. The Employee Benefit Research Institute created a metric to measure retirement readiness labeled RRR. They found that those that use 5-15% percent of their 401k funds to purchase an income giving annuity had a significant increase in their RRR. Other studies have also suggested that retirees that purchase annuities have a reduced level of stress. This provides higher satisfaction with their retirement. The less time you have to watch the markets and worry means more time doing what you love. A University of Michigan study found that higher levels of guaranteed income correlated positively with higher retirement satisfaction. Nobody wants to live in fear of the future and the studies are suggesting that annuities could help give better retirement outcomes and lower stress levels. No strategy is perfect for everyone and it is very important to seek the counsel of an advisor that specializes in annuities.