Completing the Pensions Task: Infrastructure for Nationally Coordinated Private Schemes

Journal of Economic and Social Policy, Vol. 13, No. 1, 2009

Monash University Faculty of Law Legal Studies Research Paper No. 2010/10

11 Pages Posted: 6 Oct 2010

See all articles by John Duns

John Duns

Monash University - Faculty of Law

Roger Gay

Monash University

Abstract

State-sponsored private pension schemes generally provide retirees with a lump sum, but do nothing to assist them with its conversion to an income stream. An optimal way to affect this conversion is to purchase a guaranteed term-certain annuity with part of the sum, while investing the remainder in a national bourse index fund. At present annuities must be purchased from commercial providers. If Government were to issue part of its public debt in the form of annuity bonds, retirees could purchase riskless annuities at lower cost, with government being involved in the pension scheme throughout all phases.

Keywords: lump sum conversion, retirement incomes, government annuity bonds

JEL Classification: C00, E00, K00, K19, K22, H55

Suggested Citation

Duns, John and Gay, Roger, Completing the Pensions Task: Infrastructure for Nationally Coordinated Private Schemes. Journal of Economic and Social Policy, Vol. 13, No. 1, 2009; Monash University Faculty of Law Legal Studies Research Paper No. 2010/10. Available at SSRN: https://ssrn.com/abstract=1687466

John Duns (Contact Author)

Monash University - Faculty of Law ( email )

Wellington Road
Clayton, Victoria 3800
Australia

Roger Gay

Monash University ( email )

Building 11E
Clayton, Victoria 3800
Australia

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