Edmund Cannon and Ian Tonks
- Published in print:
- 2011
- Published Online:
- September 2011
- ISBN:
- 9780199594849
- eISBN:
- 9780191729119
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199594849.003.0010
- Subject:
- Business and Management, Pensions and Pension Management
This chapter describes the operation of both the compulsory pension annuity and voluntary annuity markets in the United Kingdom, and evaluates prices using a money's worth approach. This chapter ...
More
This chapter describes the operation of both the compulsory pension annuity and voluntary annuity markets in the United Kingdom, and evaluates prices using a money's worth approach. This chapter finds that the money's worth was about 0.90 in 2004 but it then fell to about 0.80, although there is uncertainty about the appropriate mortality table. The chapter suggests that the level of the money's worth is comparable to that of other financial products and it considers possible reasons for the recent fall.Less
This chapter describes the operation of both the compulsory pension annuity and voluntary annuity markets in the United Kingdom, and evaluates prices using a money's worth approach. This chapter finds that the money's worth was about 0.90 in 2004 but it then fell to about 0.80, although there is uncertainty about the appropriate mortality table. The chapter suggests that the level of the money's worth is comparable to that of other financial products and it considers possible reasons for the recent fall.
Barbara Kaschützke and Raimond Maurer
- Published in print:
- 2011
- Published Online:
- September 2011
- ISBN:
- 9780199594849
- eISBN:
- 9780191729119
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199594849.003.0008
- Subject:
- Business and Management, Pensions and Pension Management
This chapter explores the workings of the German private annuity market to evaluate whether annuities are delivering an adequate value for money by measuring their money's worth. This chapter ...
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This chapter explores the workings of the German private annuity market to evaluate whether annuities are delivering an adequate value for money by measuring their money's worth. This chapter examines key features of the German private annuity market and give a comprehensive description of the main product groups, taking into consideration the statutory obligation to distribute substantial parts of insurer's annual profits to the annuitant. Relying on a large dataset covering about 90 percent of the German market, it calculates money's worth ratios for private payout annuities and trace long-term developments.Less
This chapter explores the workings of the German private annuity market to evaluate whether annuities are delivering an adequate value for money by measuring their money's worth. This chapter examines key features of the German private annuity market and give a comprehensive description of the main product groups, taking into consideration the statutory obligation to distribute substantial parts of insurer's annual profits to the annuitant. Relying on a large dataset covering about 90 percent of the German market, it calculates money's worth ratios for private payout annuities and trace long-term developments.
Olivia S. Mitchell and John Piggott
- Published in print:
- 2011
- Published Online:
- September 2011
- ISBN:
- 9780199594849
- eISBN:
- 9780191729119
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199594849.003.0001
- Subject:
- Business and Management, Pensions and Pension Management
Longevity risk management was a family obligation in the old days; in the twentieth century, as development, migration, and the scattering of families became more common, government and employers ...
More
Longevity risk management was a family obligation in the old days; in the twentieth century, as development, migration, and the scattering of families became more common, government and employers took over the role of providing longevity insurance. In the twenty-first century, demographic shift and government overspending has put all of these sources under stress. This chapter asks whether the future will be an era of more general and formalized private longevity insurance provision through annuities, and we explore answers across several different countries. Some nations have adopted mandatory annuitization; others have mandatory accumulation plans without requiring annuitization; and still, others remain heavily dependent on traditional social security with private annuities representing what might best be described as a residual market. Also in some nations, innovations in longevity insurance products have been embraced, apparently rather successfully, while in others — notably among emerging economies — people lack a significant annuity market.Less
Longevity risk management was a family obligation in the old days; in the twentieth century, as development, migration, and the scattering of families became more common, government and employers took over the role of providing longevity insurance. In the twenty-first century, demographic shift and government overspending has put all of these sources under stress. This chapter asks whether the future will be an era of more general and formalized private longevity insurance provision through annuities, and we explore answers across several different countries. Some nations have adopted mandatory annuitization; others have mandatory accumulation plans without requiring annuitization; and still, others remain heavily dependent on traditional social security with private annuities representing what might best be described as a residual market. Also in some nations, innovations in longevity insurance products have been embraced, apparently rather successfully, while in others — notably among emerging economies — people lack a significant annuity market.
