Longevity Risk and Private Pensions

Insurance and Private Pensions

Private Pensions and Individual Savings

had their second child expected on t,he average to have 3 children when their families are completed; those who had had a fourth child expected 4.6 children. While these expectations are somewhat, lower than those found among white Detroit area women at comparable parities, there is serious question as to whether they are realistic. Attitudes and use of birth control among the Negro sample lend...

Private Pensions, Mortality Risk, and the Decision to Annuitize

This paper examines household decisions about whether or not to annuitize retirement resources. A lifecycle model of consumption, implemented with the use of dynamic programming techniques, is used to construct a utility-based measure of annuity value for individuals and couples in the Health and Retirement Survey. Variation in the calculated “annuity equivalent wealth” arises from differences ...

Longevity and Pay-as-you-Go Pensions∗

This paper aims at investigating whether or not a utilitarian social planner should subsidize longevity-enhancing expenditures in an economy with a PAYG pension system. For that purpose, a simple two-period OLG model is developed, in which the length of the second period of life can be raised by private health spendings. Focussing on the steady-state, it is shown that the sign of the optimal su...

Private Pensions, Retirement Wealth and Lifetime Earnings

This paper investigates the effect of private pensions on the retirement wealth distribution. We incorporate stochastic private pension coverage into a calibrated life-cycle model with stochastic earnings. Private pensions lead to higher net worth inequality at retirement, which is closer to the inequality observed in the PSID than a model without private pensions. However, the offset effect of...