Too Much Risk to Insure? The Australian (Non-) Market for Annuities

40 Pages Posted: 11 Nov 2010

See all articles by Hazel Bateman

Hazel Bateman

UNSW Sydney, CEPAR

John Piggott

University of New South Wales (UNSW) - Australian School of Business, School of Economics

Date Written: September 10, 2010

Abstract

While retirement income products have become more important in Australia in recent years, the growth in these has been predominantly in phased withdrawal products which offer no longevity insurance. The life annuity market has virtually disappeared, exposing Australians to much greater uncertainty about their well-being in later life than is necessary. We suggest that both the private market and government intervention will need to be harnessed to address this issue, including better co-ordination across key policy agencies. While inaction will lead to a long term prospect of arbitrary and ill-considered government action to meet the realised uninsured outcome, there are signs of a collaborative effort to revitalize the market.

Keywords: Retirement, Income, Australia, Annuities, Pension, Longevity, Superannuation, Insurance, Retirees, Assets, Accumulation

Suggested Citation

Bateman, Hazel and Piggott, John, Too Much Risk to Insure? The Australian (Non-) Market for Annuities (September 10, 2010). Pension Research Council Working Paper No. 2010-18. Available at SSRN: https://ssrn.com/abstract=1706900 or http://dx.doi.org/10.2139/ssrn.1706900

Hazel Bateman (Contact Author)

UNSW Sydney, CEPAR ( email )

High Street
Sydney, NSW 2052
Australia

John Piggott

University of New South Wales (UNSW) - Australian School of Business, School of Economics ( email )

High Street
Sydney, NSW 2052
Australia

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