In Italy the fraction of pension capital that is mandatorily transformed into an annuity at retirement is at present equal to 50 per cent of the total capital. An increase in this fraction could perhaps be considered. Finally, we should not overlook the fact that annuities are the classic answer to longevity risk, but by no means the only one.
In reality, they make sense for people whose financial wealth is sufficient to buy them a significant income. As it may take time to accumulate sufficient levels of financial wealth until private pension schemes reach maturity, we should remember that real estate is often for households both a currently consumed asset and a major savings vehicle.