Annuity Values in Defined Contribution Retirement Systems: Australia and Singapore Compared

15 Pages Posted: 20 Dec 2004

See all articles by Suzanne Doyle

Suzanne Doyle

AMP Financial Services

Olivia S. Mitchell

University of Pennsylvania - The Wharton School; National Bureau of Economic Research (NBER)

John Piggott

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

Abstract

Annuities promise to play an increasingly important role in countries with national defined contribution retirement systems. In this article we examine life annuities in two countries, Singapore and Australia, each of which has a national mandatory pension program. Exploiting data on annuity pricing and purchase behaviour, we compare the money's worth of life annuity products across these two nations. Our results indicate that, after controlling on administrative loadings, there are important differences in measured adverse selection. Part of the explanation may be due to the different structures of the two countries' retirement systems.

Suggested Citation

Doyle, Suzanne and Mitchell, Olivia S. and Piggott, John, Annuity Values in Defined Contribution Retirement Systems: Australia and Singapore Compared. Australian Economic Review, Vol. 37, No. 4, pp. 402-416, December 2004. Available at SSRN: https://ssrn.com/abstract=629924

Suzanne Doyle

AMP Financial Services ( email )

Australia
02 9257 9187 (Phone)
02 9257 6613 (Fax)

Olivia S. Mitchell

University of Pennsylvania - The Wharton School ( email )

Philadelphia, PA 19104-6365
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

John Piggott (Contact Author)

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

High Street
Sydney, NSW 2052
Australia

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