Download or read book The Australian Annuity Market written by David M. Knox and published by . This book was released on 2000 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: The private market for life annuities (with longevity insurance) is not well developed in Australia. It is crowded out partly by the public provision of meanstested old-age pensions and partly by retirees" preference for lump sum payments and, when constrained by law, for allocated annuities that do not provide longevity insurance.
Download or read book The Australian Annuity Market written by Knox and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Knightian Analysis of the Viability of a Lifetime Annuity Market in Australia written by John R. Evans and published by . This book was released on 2015 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: The ageing of Australia's population and the maturing of the Australian Superannuation Guarantee Levy system means that there will be greater amounts of funds available to retirees to fund their retirement income needs. A guaranteed lifetime annuity is often cited as the ideal solution for the majority of retirees to convert their lump sums at retirement to a lifetime income. This paper considers issues relating to the creation of a viable guaranteed lifetime annuity market from both the buyer's and the seller's perspective within a Knightian risk management framework and concludes the inherent risks for buyers and sellers are just too high. The paper concludes that without some government intervention in the market, it is unlikely a sustainable lifetime annuity market will develop in Australia.
Download or read book Annuity Markets in Comparative Perspective written by Estelle James and published by World Bank Publications. This book was released on 2000 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Preliminary result of a continuing research project that analyzes annuity markets in various countries. The projects focused on understanding whether annuity markets can be relied upon to provide reliable retirement income at reasonable prices.
Download or read book Annuity Markets and Pension Reform written by George A. (Sandy) Mackenzie and published by Cambridge University Press. This book was released on 2006-07-24 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: This 2006 book treats two vital public policy issues: how should distributions from individual accounts be regulated, and how can the market for private annuities function better? It provides a comprehensive survey of the issues that arise when contributors to individual accounts become eligible for distributions. It also addresses the questions of whether annuitization or other restrictions on distributions should be mandatory, and if so, can the provision of annuities be privatized? Its analytical framework is applicable to a broad range of countries. Given the diminishing importance of public pensions around the world, the growing number of the elderly, and the increasing importance of defined contribution plans, the voluntary demand for private annuities is going to grow. It is vital that annuities be reasonably priced and that the annuity market be effectively regulated. The book investigates both issues, and proposes reforms to enhance the efficiency of the annuity market.
Download or read book Annuity Markets written by Edmund Stuart Cannon and published by Oxford University Press, USA. This book was released on 2008 with total page 316 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Pension Crisis concerns the changing demographic profile of the economy: an increasing number of elderly persons supported by fewer young people. Governments around the world are responding to this impending crisis by shifting their pension policies away from pay-as-you-go systems towards individual savings schemes. These savings need to be converted into a pension at retirement, and annuities provide this function. This book is a comprehensive study of annuity markets. The book starts by outlining the context of public policy towards pensions, and explains the different types of annuities available, focusing on the UK which has the largest annuity market in the world. It examines how annuities are priced, and describes the techniques of mortality measurement. As a background, it provides a history of annuities, and the experience of annuity markets in a number of other countries. The book outlines the economic theory behind annuities, and explains how annuities insure consumers against longevity risks. It goes on to describes how annuities markets function: how they work, and whether they are efficient, leading onto a discussion of the annuity puzzle. The book concludes by discussing the regulatory framework, assets available to back annuity liabilities, and recent developments in annuity markets.
Download or read book Securing Lifelong Retirement Income written by Noriyuki Takayama and published by OUP Oxford. This book was released on 2011-05-26 with total page 252 pages. Available in PDF, EPUB and Kindle. Book excerpt: As it becomes increasingly important to evaluate the risks and opportunities presented by an aging population, this book discusses products that manage longevity risk, the structure and safety of these products, and how policy can stimulate and strengthen them, within both emerging and older economies.
Download or read book Annuity Markets and Retirement Security written by James M. Poterba and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper describes the role of adverse selection in annuity markets, and sketches some of the public policy implications of the existence of such selection effects. It shows that a substantial fraction of the difference between the expected value of the payouts on both voluntary and compulsory annuity products in the U.K., and the premium cost of those products, is attributable to adverse selection. This is simply the fact that the individuals who currently choose to purchase annuities are on average longer-lived than randomly-selected individuals in the U.K. population. Adverse selection is most pronounced in the voluntary annuity market, but there is also some evidence of selection in the compulsory market, where individuals can choose which type of annuity to purchase and how much of their defined contribution balance to annuitize. Requiring all persons to annuitize their retirement account balances at a specified age is one way to substantially reduce the degree of adverse selection in the annuity market. More generally, however, any policy that encourages a large fraction of the population to participate in the annuity market is likely to have a similar effect. Doyle, Mitchell, and Piggott (2001) compare the annuity markets in Australia and Singapore, and they find a greater degree of adverse selection in the former than the latter. They attribute this difference to the relatively generous government old-age safety net in Australia, which reduces the fraction of households that find it attractive to purchase private annuities.
Download or read book Annuities and Other Retirement Products written by Roberto Rezende Rocha and published by World Bank Publications. This book was released on 2011 with total page 376 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book examines recent changes in the landscape of retirement products and annuity markets in five countries. All the selected countries (Australia, Chile, Denmark, Sweden, and Switzerland) have mandatory or quasi-mandatory savings schemes. But they also exhibit significant differences in the structure of their pension systems, the relative importance of public pillars, the role and structure of private provision, the level of annuitization, and the structure and focus of their regulatory frameworks. Five studies have been commissioned to examine the state of annuity markets in each of these countries. The findings of these studies are summarized in the last five chapters of this book. The chapters of this book is discusses the various risks faced by pensioners and the risk characteristics of alternative retirement products, and it reviews the risks faced by providers of retirement products and the management and regulatory challenges of dealing with those risks. The chapter then discusses the risks faced by providers and reviews the challenges of various regulatory issues, ranging from the institutional organization of the market for retirement products to the regulation of marketing and pricing policies and the regulation of risk management. The chapter concludes with a brief summary of main points and conclusions.
Download or read book Heterogeneity of Australian Population Mortality and Implications for a Viable Life Annuity Market written by Michael Sherris and published by . This book was released on 2018 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: Heterogeneity in mortality rates is known to exist in populations, undermining the use of age and sex as the only rating factors for life insurance and annuity products. Life insurers underwrite life products using a variety of rating factors to allow for this heterogeneity. In the case of life annuities, there is limited underwriting used. Life insurers rely on an assumption that lives will self select and price the longevity risk with an annuity mortality table that assumes above average longevity. This leads to annuities being less attractive to a wide range of individuals, and limits the ability of private annuity markets to meet longevity risk product needs of a large part of the population. There is an increasing use of rating for life annuity pricing such as impaired annuities and postcode underwriting in the UK. In order to fairly price life annuities and support a broader life annuity market, a better understanding of the extent of heterogeneity in population mortality is required. This paper applies well established frailty models and more recently developed Markov models to quantify the extent of heterogeneity in Australian population mortality. The results confirm significant heterogeneity exists. The impact of heterogeneity on life annuity rates and pension costs provides a compelling case for identifying and quantifying more explicitly the factors that determine mortality heterogeneity, particularly at the older ages, including hereditary, socio-economic, and health factors as well as personal habits.
Download or read book Australia s Piece of the Puzzle Why Don t Australians Buy Annuities written by Taleitha O'Meara and published by . This book was released on 2015 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: An individual who purchases a lifetime annuity is guaranteed to receive an income for life. As such this purchase would confer protection against investment and longevity risk for the individual in retirement. Despite these advantages, annuity sales in voluntary markets generally remain low. Reasons for this state of affairs from the current literature are reviewed, and further reasons particular to the Australian context are suggested. This contributes to an understanding of the factors that underlie the lack of popularity in contexts other than Australia as well.
Download or read book The FinancialVerse Today s Annuity Products written by Harry Stout and published by Bookbaby. This book was released on 2021-02 with total page 150 pages. Available in PDF, EPUB and Kindle. Book excerpt: Today's Annuity Products was written to educate the individual researching annuity products for use in their financial affairs. The book gives the reader all information necessary to understand annuity products and to prepare themselves to meet with a financial professional to investigate their purchase. The book takes the reader on a complete journey through the world of annuity products including: What Are Annuities and How Do They Work? The Core Benefits of Annuities Annuity Income Tax Benefits and Negatives Why Buy An Annuity? The Major Positives and Negatives to Buying Annuities How Much Income Should I Plan For? Financial Strength Behind the Products Where to Buy and the Buying Process Your Next Steps Final Thoughts / Should You Buy An Annuity? The book also contains resource checklists that prepare the reader to perform a financial check-up in preparation for determining their annuity product needs and a list of the key annuity organizations they can turn to for information about the products. Today's Annuity Products takes the over 20 years of the author's experience with these products and condenses into an understandable and useful resource for the potential annuity buyer.
Download or read book Developing an Annuity Market in Europe written by Elsa Fornero and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Life Annuity Products and Their Guarantees written by Collectif and published by OECD. This book was released on 2016-12-05 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt: This publication helps policy makers to better understand annuity products and the guarantees they provide in order to optimise the role that these products can play in financing retirement. Product design is a crucial factor in the potential role of annuity products within the pension system, along with the cost and demand for these products, and the resulting risks that are borne by the annuity providers. Increasingly complex products, however, pose additional challenges concerning consumer protection. Consumers need to be aware of their options and have access to unbiased and comprehensible advice and information about these products.
Download or read book Developing Annuities Markets written by Roberto Rezende Rocha and published by World Bank Publications. This book was released on 2007 with total page 292 pages. Available in PDF, EPUB and Kindle. Book excerpt: Developing Annuities Markets: The Experience of Chile is part of a multicountry World Bank project analyzing the market for retirement products. Among countries that have reformed their pension systems since the early 1990s, the Chilean case has emerged as the most relevant for drawing policy lessons on the role of the private sector in the provision of retirement income for two reasons: the depth, sophistication, and efficiency of the country's retirement products market, and the fact that this market was successfully developed from scratch by a middle-income country. The book examines in det.
Download or read book Annuities and Other Retirement Products written by Roberto Rezende Rocha and published by World Bank Publications. This book was released on 2011 with total page 376 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the 1990s many emerging economies in Central Europe and Latin America initiated their pension reforms. While most analysis to date has focused on the accumulation phase, there are a number of lessons to be shared as countries start to prepare the retirement options for their contributors, with this book addressing these issues from a public policy perspective.
Download or read book Life Annuity Products and Their Guarantees written by OECD and published by OECD Publishing. This book was released on 2016-12-05 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt: This publication helps policy makers to better understand annuity products and the guarantees they provide in order to optimise the role that these products can play in financing retirement.
