Payouts in Switzerland: Explaining Developments in Annuitization

31 Pages Posted: 12 Nov 2010

See all articles by Monika Butler

Monika Butler

University of St. Gallen; CESifo (Center for Economic Studies and Ifo Institute)

Stefan Staubli

University of Calgary

Date Written: September 11, 2010

Abstract

Switzerland is one of the few countries with long-term experience on withdrawal decisions made by retirees in fully-funded pension plans. Switzerland is also atypical in its unusually high annuitization rates, and indeed, a majority of retirees covered by mandatory occupational pension plans chooses an annuity at retirement. This chapter revisits the historical role of occupational pension plans in the provision of old age income, and examines the role of regulation in the payout phase. Recent developments in both market conditions and regulations are used to assess the impact of certain determinants of the annuitization decision, such as money’s worth ratios, means-tested benefits and behavioral factors.

Keywords: Pension, Benefit, Switzerland, Income, Annuitization, System, Plan, Wealth, Conversion

Suggested Citation

Bütler, Monika and Staubli, Stefan, Payouts in Switzerland: Explaining Developments in Annuitization (September 11, 2010). Pension Research Council Working Paper No. 2010-23, Available at SSRN: https://ssrn.com/abstract=1707479 or http://dx.doi.org/10.2139/ssrn.1707479

Monika Bütler (Contact Author)

University of St. Gallen ( email )

Varnbuelstr. 14
Saint Gallen, St. Gallen CH-9000
Switzerland

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Stefan Staubli

University of Calgary ( email )

University Drive
Calgary, Alberta T2N 1N4
Canada

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