Annuity Values in Defined Contribution Retirement Systems: Australia and Singapore Compared |
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Authors: | Suzanne Doyle Olivia S Mitchell John Piggott |
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Institution: | School of Economics, The University of New South Wales;The Wharton School;and School of Economics, The University of New South Wales |
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Abstract: | Annuities promise to play an increasingly important role in countries with national defined contribution retirement systems. In this article we examine life annuities in two countries, Singapore and Australia, each of which has a national mandatory pension program. Exploiting data on annuity pricing and purchase behaviour, we compare the money's worth of life annuity products across these two nations. Our results indicate that, after controlling on administrative loadings, there are important differences in measured adverse selection. Part of the explanation may be due to the different structures of the two countries’retirement systems. |
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