The Role Of Real Annuities And Indexed Bonds In An Individual Accounts Retirement Program PDF Download
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Author | : Jeffrey R. Brown |
Publisher | : |
Total Pages | : 62 |
Release | : 1999 |
Genre | : Annuities |
ISBN | : |
Download The Role of Real Annuities and Indexed Bonds in an Individual Accounts Retirement Program Book in PDF, ePub and Kindle
We explore four issues concerning annuitization options that retirees might use in the decumulation phase of an individual accounts' retirement saving system. First, we investigate the operation of both real and nominal annuity individual annuity markets in the United Kingdom. The widespread availability of real annuities in the U.K. dispels the argument that private insurance markets could not, or would not, provide real annuities to retirees. Second, we consider the current structure of two inflation-linked insurance products available in the United States, only one of which proves to be a real annuity. Third, we evaluate the potential of assets such as stocks, bonds, and bills, to provide retiree protection from inflation. Because equity real returns have been high over the last seven decades, a retiree who received income linked to equity returns would have fared very well on average. Nevertheless we cast doubt on the inflation insurance' aspect of equity, since this is mainly due to stocks' high average return, and not because stock returns move in tandem with inflation. Finally, we use a simulation model to assess potential retiree willingness to pay for real, nominal, and variable payout equity-linked annuities. For plausible degrees of risk aversion, inflation protection appears to have only modest value. People would be expected to value a variable payout equity-linked annuity more highly than a real annuity because the additional real returns associated with common stocks more than compensate for the volatility of prospective payouts. These finding are germane to concerns raised in connection with Social Security reform plans that include individual accounts.
Author | : Jeffrey R. Brown |
Publisher | : MIT Press |
Total Pages | : 248 |
Release | : 2001-11-09 |
Genre | : Business & Economics |
ISBN | : 9780262261692 |
Download The Role of Annuity Markets in Financing Retirement Book in PDF, ePub and Kindle
Annuity insurance products help protect retirees against outliving their incomes. Dramatic advances in life expectancy mean that today's retirees must plan on living into their eighties, their nineties, and even beyond. Longer life expectancies are the symbol of a prosperous society, but this progress also means that some retirees will need to plan conservatively and cut back substantially on their living standards or risk living so long that they exhaust their resources. This book examines the role that life annuities can play in helping people protect themselves against such outcomes. A life annuity is an insurance product that pays out a periodic amount for as long as the annuitant is alive, in exchange for a premium. The book begins with a history of life annuity markets during the twentieth century in the United States and elsewhere. It then explores recent trends in annuity pricing and money's worth, as well as the economic value generated for purchasers of these products. The book explains the potential importance of inflation-protected annuities and stock-market-linked variable annuities in providing more complete retirement security. The concluding chapters examine life annuities in various institutional settings and the tax treatment of annuity products.
Author | : Collectif |
Publisher | : OECD |
Total Pages | : 108 |
Release | : 2016-12-05 |
Genre | : Business & Economics |
ISBN | : 9264267794 |
Download Life Annuity Products and Their Guarantees Book in PDF, ePub and Kindle
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.
Author | : Roberto Rezende Rocha |
Publisher | : World Bank Publications |
Total Pages | : 376 |
Release | : 2011 |
Genre | : Business & Economics |
ISBN | : 0821385747 |
Download Annuities and Other Retirement Products Book in PDF, ePub and Kindle
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.
Author | : Martin Feldstein |
Publisher | : University of Chicago Press |
Total Pages | : 481 |
Release | : 2007-11-01 |
Genre | : Political Science |
ISBN | : 0226241890 |
Download The Distributional Aspects of Social Security and Social Security Reform Book in PDF, ePub and Kindle
Social security is the largest and perhaps the most popular program run by the federal government. Given the projected increase in both individual life expectancy and sheer number of retirees, however, the current system faces an eventual overload. Alternative proposals have emerged, ranging from reductions in future benefits to a rise in taxrevenue to various forms of investment-based personal retirement accounts. As this volume suggests, the distributional consequences of these proposals are substantially different and may disproportionately affect those groups who depend on social security to avoid poverty in old age. Together, these studies persuasively show that appropriately designed investment-based social security reforms can effectively reduce the long-term burden of an aging society on future taxpayers, increase the expected future income of retirees, and mitigate poverty rates among the elderly.
Author | : G. A. Mackenzie |
Publisher | : International Monetary Fund |
Total Pages | : 66 |
Release | : 2002-09 |
Genre | : Business & Economics |
ISBN | : |
Download The Role of Private Sector Annuities Markets in an Individual Accounts Reform of a Public Pension Plan Book in PDF, ePub and Kindle
Pension reforms that establish individual accounts will diminish the relative importance of the traditional state pension while creating a significant role for individual accounts in providing income for retirement. This paper surveys the policy issues this new role entails. It offers general advice to countries considering such issues as the restrictions to be placed on the timing, extent, and form of withdrawals from individual accounts and the need for mandatory annuitization (conversion into annuities) of accumulated account balances. The paper also considers the role that private annuity markets should play and related regulatory, social safety net, tax, and administrative questions.
Author | : Alicia H. Munnell |
Publisher | : Rowman & Littlefield |
Total Pages | : 444 |
Release | : 2004-05-13 |
Genre | : Business & Economics |
ISBN | : 9780815758921 |
Download Death and Dollars Book in PDF, ePub and Kindle
Despite the recent downturn in the stock market, the 1990s boom and the shift to defined contribution plans mean that more individuals will have significant wealth upon retirement. How they use that wealth will determine not only their own well-being, but also the living standards of their children, the resources available to philanthropies, and the level of investment capital in the economy. This volume explores the reasons why people save, how they decide to allocate their wealth once they retire, and how givers select their beneficiaries. It also assesses the extent to which the estate tax and annuitization of retirement wealth affects the amount and nature of wealth transfers. Finally, it looks at the impact of wealth transfers––first on the amount of aggregate saving and capital accumulation, and then on the distribution of wealth among households. Several conclusions emerge. First, gifts and bequests are important; they may account for about half of total wealth in America. Second, rich people make most of the wealth transfers. They are thoughtful about how much they pay in taxes and how they dispose of their wealth. They care about philanthropic causes and view their charitable contributions as more than a way to avoid paying estate taxes. Third, most nonrich people probably have some lexicographic preferences about the disposition of their wealth; they want to ensure they have adequate resources to take care of their own needs, and if money is left over, they would like it to go to their children. Fourth, little support has emerged for the pure altruistic model of bequests. Fifth, institutions matter. In the case of the rich, the estate tax probably reduces saving and increases bequests to charity. In the case of the nonrich, the shift to defined contribution plans will at a minimum mean that they have more wealth in their hands when they die, and therefore they will leave larger accidental bequests. It might also increase their interest in lea
Author | : OECD |
Publisher | : OECD Publishing |
Total Pages | : 378 |
Release | : 2015-12-01 |
Genre | : |
ISBN | : 9264244441 |
Download Pensions at a Glance 2015 OECD and G20 indicators Book in PDF, ePub and Kindle
The 10-year anniversary edition of Pensions at a Glance highlights the pension reforms undertaken by OECD and G20 countries over the last two years. Two special chapters provide deeper analysis of first-tier pension schemes and of the impact of short or interrupted careers, due to late entry ...
Author | : Niels E. Kortleve |
Publisher | : Emerald Group Publishing |
Total Pages | : 219 |
Release | : 2006-05-01 |
Genre | : Political Science |
ISBN | : 044452245X |
Download Fair Value and Pension Fund Management Book in PDF, ePub and Kindle
Written in accordance with the rules set by the International Accounting Standards Board, this work deals with the application of fair-value principles to accounting for pensions. It is of interest to pension professionals, pension fund trustees, and regulators.
Author | : Alan J. Auerbach |
Publisher | : Springer Science & Business Media |
Total Pages | : 353 |
Release | : 2013-11-11 |
Genre | : Business & Economics |
ISBN | : 3662047799 |
Download Ageing, Financial Markets and Monetary Policy Book in PDF, ePub and Kindle
The book gives an overview of the implications of population ageing on economic development and financial systems. It describes several challenges which the ageing process poses for central banks, giving special consideration to the situation in Europe. The first two chapters discuss the relationship between ageing and saving and between ageing and international capital flows. Other chapters consider the possible implications for financial markets. The final part raises issues which are of particular relevance for central banks, namely ageing and financial stability and how ageing will affect monetary policy.