From Here to Security: How Workplace Savings Can Keep America's Promise

GLOSSARY

Annuities, Annuitization—Annuities are income contracts purchased from financial institutions. Typically used to provide guaranteed income in retirement, these contracts may be purchased before investors retire, upon retirement, or at some time later during retirement. The period between purchase and payout is called the accumulation phase; the period in which the contract pays investors is called the annuitization phase.

Automaticity—The creation of default options, most typically the automatic placement of workers into savings plans and into investment strategies that aim to benefit their long-term prospects for financial security in retirement. Examples include auto-enrollment, auto allocation, auto-escalation of deferrals, and ...