scholarly journals Non-Exclusivity and Adverse Selection: An Application to the Annuity Market

2006 ◽  
Author(s):  
Agar Brugiavini ◽  
Gwenael Piaser
Keyword(s):  
Adverse Selection ◽  
Annuity Market

scholarly journals Evidence on Annuity Choices in Chile

2020 ◽  
Vol 19 (1) ◽  
pp. 33 ◽  
Author(s):  
José Luis Ruiz
Keyword(s):  
Labor Market ◽  
Adverse Selection ◽  
Pension System ◽  
Poor Health ◽  
Traditional View ◽  
Annuity Market ◽  
Using Data ◽  
Sales Agents ◽  
Minimum Pension

This study analyzes the empirical determinants of the annuity choice using data on retirees from the Chilean labor market. We find that sales agents, knowledge about the pension system, and greater education will be associated with an increase in the annuitization probability. Also, we expect that people in poor health are less likely to annuitize, which is supportive of the traditional view of adverse selection in the annuity market. Finally, we analyze the effects on annuity choices of the introduction of a Minimum Pension Guarantee.

scholarly journals Price efficiency in the Dutch Annuity Market

2013 ◽  
Vol 14 (1) ◽  
pp. 1-18 ◽  
Author(s):  
EDMUND CANNON ◽  
RALPH STEVENS ◽  
IAN TONKS
Keyword(s):  
Life Expectancy ◽  
The Netherlands ◽  
Adverse Selection ◽  
International Standards ◽  
Price Efficiency ◽  
Annuity Market ◽  
Conflicting Evidence

AbstractWe provide the first analysis of annuity rates in the Netherlands for the period 2001–2012. During this period, the number of annuity providers was high and stable, and we find that falls in annuity rates can be explained entirely by changes in yields and life expectancy. We show that annuitants could have increased their annuity income by about 5%, by shopping around and purchasing their annuities from alternative providers. Money's worth calculations show that the market is efficient by international standards, with a money's worth above 0.9 for the whole period and close to unity by the end of the period. We present conflicting evidence on the existence of adverse selection because although we find money's worths are inversely related to age of purchase, we find that they are positively related to size of purchase.

Overview of the Issue

2006 ◽  
Vol 5 (2) ◽  
pp. i-ii
Author(s):  
JEFFREY BROWN ◽  
STEVEN HABERMAN ◽  
MOSHE MILEVSKY ◽  
MIKE ORSZAG
Keyword(s):  
Adverse Selection ◽  
Competitive Market ◽  
High Rate ◽  
Research Articles ◽  
Defined Contribution ◽  
Review Section ◽  
Annuity Market

The second issue of the fifth volume of the JPEF features 4 research articles, and a book review section. The first article is by Estelle James, Guillermo Martinez and Augusto Iglesias and looks at: “The payout stage in Chile: Who annuitizes and why?” Low rates of voluntary annuitization are a major issue in defined contribution pension designs. Yet, in Chile, about 2/3 of individuals choose to annuitize instead of taking programmed withdrawals. The paper examines the reasons for this high rate of annuitization and concludes that it is due to the combination of a competitive market in annuities and the relatively constrained alternatives available to individuals. The paper nevertheless finds some evidence of adverse selection in the Chile annuity market.

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