The Australian Annuity Market

Knox, David M.

World Bank, Washington, DC

关键词: ACTUARIES;    ADVERSE SELECTION;    ANNUITIES;    ANNUITY;    ANNUITY MARKETS;   

DOI  :  10.1596/1813-9450-2495
RP-ID  :  WPS2495

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

In Australia, a means-tested old-agepublic pension is paid from general tax revenues. A fullpension (equivalent to roughly a quarter of the averagewage) is currently paid to more than half the agedpopulation, and a reduced pension is paid to another quarterof the aged population. About 20 percent receive no old-agepublic pension because of the level of their income orassets. There is also a compulsory system under whichemployers contribute at least 7 percent of salaries into asuperannuation plan for the vast majority of employees.(This minimum rate will gradually rise to 9 percent in2002.) More than 80 percent of superannuation benefits arereceived as lump sums; when public sector employees areexcluded, the figure rises to almost 90 percent. The marketfor private life annuities with longevity insurance is verysmall. Greater use is made of allocated annuities, which aresimilar to income drawdowns in the United Kingdom orscheduled withdrawals in Latin American countries. The valueof life annuities, measured by the money's worth ratio,compares favorably with that of annuities available in theUnited Kingdom and United States. But these ratios arecalculated on the basis of conservative government bondyields. Many investors prefer allocated annuities--which areperceived to offer considerable advantages in flexibilityand higher potential returns--despite the absence oflongevity insurance.