An Overview of International Deferred Annuity Markets

14 Pages Posted: 24 Aug 2019

See all articles by Anran Chen

Anran Chen

City University London - Faculty of Actuarial Science

Steven Haberman

City University London - Faculty of Actuarial Science

Steve Thomas

City University London - Sir John Cass Business School

Date Written: August 2019

Abstract

In recent years, the deferred annuity has aroused intensive discussion as a retirement solution product. In the course of understanding reasons behind the low demand of immediate annuities, two behavioural models, cumulative prospect theory and the hyperbolic discount model, have suggested that deferred annuity products would be popular among retirees. Therefore, in this paper, we provide an overview of the deferred annuity in several international markets, in terms of its availability, sales and demand, and relevant government policies. We find that, in general, there is an increasing awareness of and discussions around the world about deferred annuity products. However, the market share of the deferred annuity is very limited so far, unless there is an encouragement by the government using specific tax rules and regulation policies.

Keywords: Deferred Annuity; Retirement Solution; Pension

JEL Classification: G22

Suggested Citation

Chen, Anran and Haberman, Steven and Thomas, Stephen H., An Overview of International Deferred Annuity Markets (August 2019). Available at SSRN: https://ssrn.com/abstract=3441671 or http://dx.doi.org/10.2139/ssrn.3441671

Anran Chen (Contact Author)

City University London - Faculty of Actuarial Science ( email )

106 Bunhill Row
London, EC1Y 8TZ
United Kingdom

Steven Haberman

City University London - Faculty of Actuarial Science ( email )

London
United Kingdom

Stephen H. Thomas

City University London - Sir John Cass Business School ( email )

106 Bunhill Row
London, EC1Y 8TZ
United Kingdom
+44 (0) 20 7040 5271 (Phone)
+44 (0) 20 7040 8881 (Fax)

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