Annuitization Puzzles
نویسندگان
چکیده
منابع مشابه
Annuitization with Mortality Heterogeneity
This article examines the distributional implications of mandatory longevity insurance when mortality heterogeneity exists in the population. Previous research has demonstrated the significant financial redistribution that occurs under alternative annuity programs in the presence of differential mortality across groups. This article embeds that analysis into a life-cycle framework that allows f...
متن کاملAnnuitization : If Not Now , When ?
In previous writing – and related papers by Chen and Milevsky (JFP, 2003) or Ameriks, Veres and Warshawsky (JFP, 2001) – the point has been made that payout annuities, either variable or fixed, have a rightful place in the optimal life-cycle portfolio. I have argued that depending on a lifecycle investor’s bequest motive versus their desire for consumption, they should have a substantial portio...
متن کاملAnnuitization and Retirement Timing Decisions
This paper analyzes retirement timing decisions of DC pension plan members. In this paper the optimal annuitization timing decision is incorporated into the retirement timing decision. I rst develop a retirement decision model and generate a forward looking retirement likelihood measure from this model. This measure describes the probability that an individual will retire within the next few y...
متن کاملAre Cognitive Constraints a Barrier to Annuitization?
With the shift from defined benefit pensions to 401(k) plans, individuals are increasingly responsible not only for saving for retirement but also for drawing down their assets in retirement. These drawdown decisions require substantial cognitive effort and are very difficult for the average person. Yet most models of asset decumulation ignore the possibility that individuals may differ in thei...
متن کاملWhat Makes Annuitization More Appealing?
We conduct and analyze two large surveys of hypothetical annuitization choices. We find that allowing individuals to annuitize a fraction of their wealth increases annuitization relative to a situation where annuitization is an "all or nothing" decision. Very few respondents choose declining real payout streams over flat or increasing real payout streams of equivalent expected present value. Hi...
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ژورنال
عنوان ژورنال: Journal of Economic Perspectives
سال: 2011
ISSN: 0895-3309
DOI: 10.1257/jep.25.4.143