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Policy Options for the Payout Phase

26 Pages Posted: 26 Mar 2009  

Pablo Antolin

Organisation for Economic Cooperation and Development, OECD

Date Written: September 16, 2008

Abstract

This paper assesses how countries' pension arrangements and regulation shape the appropriate structure and flexibility of retirement payout options. The paper aims at providing a guide to policy makers on how to address the diverse questions posed when designing the payout phase or promoting DC pension arrangements, as well as encouraging a market for annuities. The paper addresses questions concerning the type of retirement payout options for accumulated assets in DC plans a country should allow, which entities should provide annuities, and the type of annuity products that could be allowed. The main recommendation is for policy makers to consider mandating deferred life annuities that start paying at very old ages (e.g. at age 85) and allow for the remaining assets accumulated in DC accounts to be allocated as programmed withdrawals (preferably with flexibility to face contingencies).

Keywords: Annuities, programmed withdrawal, lump-sums, retirement income, annuity providers, insurance companies, annuity markets, longevity risk, and deferred life annuities

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

Suggested Citation

Antolin, Pablo, Policy Options for the Payout Phase (September 16, 2008). Available at SSRN: https://ssrn.com/abstract=1368795 or http://dx.doi.org/10.2139/ssrn.1368795

Pablo Antolin (Contact Author)

Organisation for Economic Cooperation and Development, OECD ( email )

2 rue Andre Pascal
Paris Cedex 16, MO 63108
France
33-1-45.24.90.86 (Phone)
33-1-44.30.63.08 (Fax)

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