Publication: A Conceptual Framework for Retirement Products: Risk Sharing Arrangements Between Providers and Retirees
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Published
2004-02
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Date
2013-07-01
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Abstract
Voluntary annuity markets are, in most countries, smaller than what the theoretical and part of the empirical literature would suggest. There are both demand and supply constraints that hamper the development of annuity markets. In particular, traditional products available in most countries can require excessive minimum capital requirements for given investment opportunities available to providers. Investment and longevity risk should be shared between providers and annuitants so that supply constraints can be relaxed. Alternative annuity products, which imply risk sharing, could be backed by substantially lower capital investments or, equivalently, provided at substantially lower prices to consumers.
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“Impavido, Gregorio; Thorburn, Craig; Wadsworth, Mike. 2004. A Conceptual Framework for Retirement Products: Risk Sharing Arrangements Between Providers and Retirees. Policy Research Working Paper;No.3208. © World Bank. http://hdl.handle.net/10986/14315 License: CC BY 3.0 IGO.”
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