Regulation of Withdrawals in Individual Account Systems

24 Pages Posted: 15 Feb 2006

Date Written: November 1999


Funded mandatory pension systems based on individual accounts are spreading around the world. With the maturation of these systems, regulating the withdrawal of retirement savings will become increasingly important. Government regulation of withdrawals should mandate the purchase of inflation-indexed life annuities exceeding income available from government welfare programs for the retiree and potential survivors. Proper functioning of insurance markets does not, however, require annuitizing the entire account balance. Instead, more flexibility for the choice of withdrawals could be permitted for any remaining funds, helping to tailor income streams to individual needs and living arrangements.

Keywords: annuity pension reform individual accounts

JEL Classification: G22 G23 H55

Suggested Citation

Walliser, Jan, Regulation of Withdrawals in Individual Account Systems (November 1999). IMF Working Paper No. 99/153, Available at SSRN:

Jan Walliser (Contact Author)

Congressional Budget Office ( email )

Ford House Office Building
2nd & D Streets SW
Washington, DC 20515
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
PlumX Metrics