Rocha, RobertoRudolph, Heinz P.2012-03-192012-03-192010-06-01https://hdl.handle.net/10986/3811The rapid growth of the market for retirement products in Chile has its origins in the pension reform that was implemented in 1981. But the successful development of an active annuity market also reflects many other factors. This paper summarizes and updates an earlier longer study on the development of the Chilean annuity market. The update focuses on the numerous changes that were introduced in 2008. The most striking aspect of the Chilean experience is the very high rate of annuitization. This has been linked to the restrictions that have been applied to lump-sum withdrawals, the offer of inflation-protected annuities, and the robust prudential regulation of providers. But the level of annuitization has also been supported by the annuitization incentives provided to early retirees and the influence of brokers and sales agents. The recent regulatory changes have weakened the impact of the last two factors, while strengthening the demand for annuities at normal retirement.CC BY 3.0 IGOACCOUNTINGANNUITIES MARKETSANNUITYANNUITY MARKETANNUITY PAYMENTANNUITY PROVIDERSANNUITY RATEANNUITY RATESASSET MANAGEMENTASSET MANAGERSBALANCE SHEETBALANCE SHEETSBANK BONDSBANKRUPTCYBANKRUPTCY RISKBANKRUPTCY RISKSBARRIER TO ENTRYBASIS POINTSBENEFICIARIESBENEFICIARYBENEFIT FORMULABENEFIT PAYMENTSBEQUESTBEQUESTSBIDDING PROCESSBONDBOND FUNDSBOND PORTFOLIOSBROKERBROKERSCAPITAL ADEQUACYCAPITAL MARKETCAPITAL MARKETS DEVELOPMENTCAPITAL REQUIREMENTCASH FLOWSCENTRAL BANKCOMPETITIVE MARKETCONTINGENT LIABILITYCONTRIBUTION RATESCORPORATE BONDCORPORATE BONDSCREDIT ENHANCEMENTCREDIT RISKCREDIT STANDINGSDEBTDEBT INSTRUMENTSDEFAULTSDEFERRED ANNUITIESDEFERRED ANNUITYDEFINED BENEFITDEFINED-CONTRIBUTION PENSIONDEPOSITSDERIVATIVESDISABILITY PENSIONDISABILITY PENSIONSDIVERSIFIED PORTFOLIOEARLY RETIREMENT PENSIONSELDERLYELECTRONIC PAYMENT SYSTEMSEQUITY FUNDSEXCHANGE RATEFINANCIAL CRISESFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL MARKETSFIXED ANNUITIESFIXED INCOMEFIXED INCOME PORTFOLIOFOREIGN INVESTMENTSFREE BONDSGLOBAL CAPITALGLOBAL CAPITAL MARKETSGOVERNMENT BONDSGOVERNMENT GUARANTEESGUARANTEED PERIODHOUSING FINANCEINCOME INSTRUMENTSINCOME LEVELSINCOME STREAMSINDEXED ANNUITIESINDIVIDUAL ACCOUNTINFLATIONINFLATION RISKINFLATION RISKSINSTRUMENTINSURANCEINSURANCE COMPANIESINSURANCE COMPANYINSURANCE MARKETINSURANCE PREMIUMINSURANCE PREMIUMSINTEREST RATEINTERMEDIATION SPREADINTERMEDIATION SPREADSINTERNAL RATE OF RETURNINTERNAL RATES OF RETURNINTERNATIONAL BANKINTERNATIONAL STANDARDSINVESTINGINVESTMENT FUNDSINVESTMENT HORIZONINVESTMENT RATEINVESTMENT RETURNINVESTMENT RETURNSINVESTMENT RISKJOINT ANNUITIESLABOR FORCELABOR INCOMELABOR MARKETLEVEL OF INTEREST RATESLEVIESLEVYLIFE ANNUITIESLIFE EXPECTANCYLIFE INSURANCELIFE INSURANCE COMPANIESLIFE INSURANCE PREMIUMSLIQUID INSTRUMENTSLIQUIDITYLIQUIDITY PREMIUMLONG-TERM ASSETSLONGEVITY INSURANCELONGEVITY RISKLONGEVITY RISKSLUMP SUM WITHDRAWALSMANDATORY COVERAGEMANDATORY SAVINGSMARK-TO-MARKETMARKET CONCENTRATIONMARKET CONDITIONSMARKET INTEREST RATESMARKET SHAREMARKET VALUESMATURITIESMATURITYMORAL HAZARDMORTALITYMORTALITY TABLEMORTGAGEMORTGAGE BONDMORTGAGE BONDSMORTGAGE-BACKED SECURITIESMUTUAL FUNDSNORMAL RETIREMENT AGEOBLIGATORY RESERVEPENSIONPENSION ACCOUNTSPENSION ASSETSPENSION FUNDPENSION FUND ADMINISTRATORSPENSION FUND ASSETSPENSION FUND MEMBERSPENSION FUNDSPENSION FUNDS INSURANCEPENSION INSURANCEPENSION LAWPENSION REFORMPENSION REFORMSPENSION SECTORPENSION SYSTEMPENSION SYSTEMSPENSIONERSPENSIONSPILLAR BENEFITPORTFOLIOPORTFOLIOSPREPAYMENTPREPAYMENT RISKSPRIVATE EQUITYPRIVATE PENSIONPRIVATE PENSION FUNDSPRIVATE PENSION SYSTEMSPRIVATE PLACEMENTSPROFIT MARGINSPRUDENTIAL REGULATIONPUBLIC MARKETSPUBLIC PENSIONPUBLIC PILLARQUOTATION SYSTEMRATES OF INTERESTRATES OF RETURNREAL INTERESTREAL INTEREST RATESREGULAR PAYMENTSREGULATORY FRAMEWORKREINVESTMENTREINVESTMENT RATEREPLACEMENT RATESRESERVERESERVESRETIREERETIREESRETIREMENTRETIREMENT AGERETIREMENT BENEFITSRETIREMENT INCOMERETIREMENT PHASERETIREMENT PRODUCTRETIREMENT PRODUCTSRETIREMENT SYSTEMRETIRING WORKERSRETURNRETURNSRETURNS ON EQUITYRISK MANAGEMENTRISK POOLINGRISK PREMIUMSRISK PROFILESRISK SHARINGRISK-FREE RATESHARE OF EQUITIESSTATE GUARANTEESSUPERVISORY AGENCYSURVIVOR PENSIONSTAXTRANSPARENCYTREASURYTREASURY BONDSTURNOVERVALUATIONVALUE OF ASSETSVARIABLE ANNUITIESWAGE GROWTHWITHDRAWALYIELD CURVEWorld Bank10.1596/1813-9450-5325