Mandatory annuitization and money's worth: evidence from Singapore

被引:3
作者
Fong, Joelle H. [1 ]
Li, Jackie [2 ]
机构
[1] Natl Univ Singapore, Lee Kuan Yew Sch Publ Policy, Econ Publ Policy, 469C Bukit Timah Rd,NUS, Singapore 259772, Singapore
[2] Macquarie Univ, Fac Business & Econ, Dept Actuarial Studies & Business Analyt, Sydney, NSW, Australia
关键词
Annuities; insurance; longevity risk; pension policy; retirement; stochastic mortality model; MORTALITY; ANNUITIES; EXTENSION; SELECTION; MODEL; RISK;
D O I
10.1017/S147474722100010X
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
This paper examines the impact of uncertainties in the future trends of mortality on annuity values in Singapore's compulsory purchase market. We document persistent population mortality improvement trends over the past few decades, which underscores the importance of longevity risk in this market. Using the money's worth framework, we find that the life annuities delivered expected payouts valued at 1.019-1.185 (0.973-1.170) per dollar of annuity premium for males (females). Even in a low mortality improvement scenario, the annuities provide an expected value exceeding 0.950. This suggests that participants in the national annuity pool have access to attractively priced annuities, regardless of sex, product, and premium invested.
引用
收藏
页码:405 / 424
页数:20
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