Ageing and the Payout Phase of Pensions, Annuities and Financial Markets

Abstract:     
This paper reviews the impact of aging on private pensions, in particular on the payout phase, assesses the part that annuities can play in financing retirement, and examines the role of financial markets in facilitating the allocation on assets accumulated in defined contribution pension plans. A comprehensive set of recommendations for discussion is provided at the end of the paper.

Keywords: Defined contribution pension plans, annuities, programmed withdrawal, lump-sums, retirement income, annuity providers, insurance companies, annuity markets, deferred life annuities, longevity risk, long-term bonds, longevity-indexed bonds and longevity index

JEL Classifications: D11, D14, D91, E21, G11, G38, J14, J26

Working Paper Series