Annuities in (N)DC Pension Schemes : Design, Heterogeneity, and Estimation Issues

Palmer, Edward ; de Gosson de Varennes, Yuwei Zhao

World Bank, Washington, DC

关键词: LIFE EXPECTANCY;    DEFINED CONTRIBUTION;    PENSION BENEFITS;    ANNUITIES;   

RP-ID  :  136562

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper identifies and discusses fourissues in creating annuities in (nonfinancial) definedcontribution (NDC) schemes that are essential for systems’financial stability and fair inter or intragenerationalredistribution. The first issue is the choice betweenincorporating the rate of return into the annuity or intothe exogenous indexation. The second issue is in choosing aprojection method for life expectancy that producessystematically unbiased estimates. The third issue is atwhat age the projection of life expectancy is to be fixedover the remaining lifetime of the annuity. The final issueis the prevalence of socioeconomic heterogeneity within theinsurance pool.