Forms of Benefit Payment at Retirement

59 Pages Posted: 26 Mar 2009

See all articles by Pablo Antolin

Pablo Antolin

Organisation for Economic Cooperation and Development, OECD

Colin Pugh

affiliation not provided to SSRN

Fiona Stewart

Organization for Economic Co-Operation and Development (OECD)

Date Written: September 11, 2008

Abstract

This paper focuses on describing the international practice on the various forms of retirement benefit payment currently allowed in countries throughout the world and the regulatory environment surrounding these different forms of benefit payment. The analysis suggests considerable variance between countries. Some countries only allow one form of retirement payment, while others allow several forms or even a combination of them. Examining country practices as regard the providers of benefit payments, suggest that lump-sums and programmed withdrawals are generally provided by pension funds; while, as regard life annuities, providers varied from insurance companies, to pension funds, financial intermediaries and a centralized annuity fund. The paper ends by examining the role of taxation where a choice between different types of benefit payments is allowed. Tax provision plays a key direct or indirect role in influencing payout options. Cross country evidence is varied but suggests that there is often an unequal tax treatment of the various forms of retirement payout options

Keywords: benefit payments at retirement, lump-sums, programmed withdrawals, life annuities, regulatory environment, pension funds, insurance companies, financial intermediaries, centralized annuity fund, taxation

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

Suggested Citation

Antolin, Pablo and Pugh, Colin and Stewart, Fiona, Forms of Benefit Payment at Retirement (September 11, 2008). Available at SSRN: https://ssrn.com/abstract=1368819 or http://dx.doi.org/10.2139/ssrn.1368819

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)

Colin Pugh

affiliation not provided to SSRN ( email )

Fiona Stewart

Organization for Economic Co-Operation and Development (OECD) ( email )

2 rue Andre Pascal
Paris Cedex 16, 75775
France

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