Annuities and Their Derivatives: The Recent Canadian Experience

24 Pages Posted: 11 Nov 2010

See all articles by Moshe A. Milevsky

Moshe A. Milevsky

York University - Schulich School of Business

Ling Wu Shao

York University - Schulich School of Business

Date Written: September 10, 2010

Abstract

This chapter surveys recent developments within the Canadian “income annuity” marketplace. We start by computing the Money’s Worth Ratio (MWR) using a unique dataset which includes a decade of Canadian annuity payouts. We then move-on to discuss the Guaranteed Lifetime Withdrawal Benefit (GLWB) product which has recently become available in Canada. This important innovation is extremely popular and shares many characteristics with a conventional income annuity. Finally, we conclude with thoughts on the optimal product allocation within the context of the Canadian retirement portfolio.

Keywords: Annuity, Income, Canada, Products, Insurance, Variable, Withdrawl, Retirement, Longevity, Mortality

Suggested Citation

Milevsky, Moshe Arye and Shao, Ling Wu, Annuities and Their Derivatives: The Recent Canadian Experience (September 10, 2010). Pension Research Council Working Paper No. 2010-16, Available at SSRN: https://ssrn.com/abstract=1706893 or http://dx.doi.org/10.2139/ssrn.1706893

Moshe Arye Milevsky (Contact Author)

York University - Schulich School of Business ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

Ling Wu Shao

York University - Schulich School of Business ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3
Canada

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
199
Abstract Views
1,180
rank
185,361
PlumX Metrics