Abstract
This paper seeks to explain why annuity purchases are postponed to a later age. We consider an overlapping generations model with uncertain lifetime and two types of annuities. It is shown that, if the economy is dynamically inefficient, individuals demand annuities without delay. However, if it is efficient, annuity purchases are postponed. We also show that these results are robust to several extensions.
| Original language | English |
|---|---|
| Article number | 102500 |
| Journal | Journal of Mathematical Economics |
| Volume | 95 |
| DOIs | |
| Publication status | Published - Aug 2021 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
-
SDG 3 Good Health and Well-being
Austrian Fields of Science 2012
- 502047 Economic theory
Keywords
- Annuity purchases
- Overlapping generations
- Postponement
- Annuity pricing
- DEMAND
- ANNUITIZATION
- INSURANCE
- RISK
- LIFE EXPECTANCY
- PRIVATE
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