Publication Type

Journal Article

Version

acceptedVersion

Publication Date

12-2011

Abstract

Although annuities are a theoretically appealing way to manage longevity risk, in the real world relatively few consumers purchase them at retirement. To counteract the possibility of retirees outliving their assets, Singapore’s Central Provident Fund, a national defined contribution pension scheme, has recently mandated annuitization of workers’ retirement assets. More significantly, the government has entered the insurance market as a public sector provider for such annuities. This article evaluates the money’s worth of life annuities and discusses the impact of the government mandate and its role as an annuity provider on the insurance market.

Keywords

Central Provident Fund, mandate, retirement assets, annuitization

Discipline

Finance and Financial Management

Research Areas

Finance

Publication

Journal of Risk and Insurance

Volume

78

Issue

4

First Page

961

Last Page

982

ISSN

0022-4367

Identifier

10.1111/j.1539-6975.2010.01401.x

Publisher

Wiley

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1111/j.1539-6975.2010.01401.x

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