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

This paper identifies and discusses four issues in creating annuities in (nonfinancial) defined contribution (NDC) schemes that are essential for systems’ financial stability and fair inter or intragenerational redistribution. The first issue is th...

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Main Authors:	Palmer, Edward, de Gosson de Varennes, Yuwei Zhao
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	LIFE EXPECTANCY DEFINED CONTRIBUTION PENSION BENEFITS ANNUITIES
Online Access:	http://documents.worldbank.org/curated/en/521481556883024663/Annuities-in-N-DC-Pension-Schemes-Design-Heterogeneity-and-Estimation-Issues http://hdl.handle.net/10986/31640

id	okr-10986-31640
recordtype	oai_dc
spelling	okr-10986-316402021-05-25T09:23:39Z Annuities in (N)DC Pension Schemes : Design, Heterogeneity, and Estimation Issues Palmer, Edward de Gosson de Varennes, Yuwei Zhao LIFE EXPECTANCY DEFINED CONTRIBUTION PENSION BENEFITS ANNUITIES This paper identifies and discusses four issues in creating annuities in (nonfinancial) defined contribution (NDC) schemes that are essential for systems’ financial stability and fair inter or intragenerational redistribution. The first issue is the choice between incorporating the rate of return into the annuity or into the exogenous indexation. The second issue is in choosing a projection method for life expectancy that produces systematically unbiased estimates. The third issue is at what age the projection of life expectancy is to be fixed over the remaining lifetime of the annuity. The final issue is the prevalence of socioeconomic heterogeneity within the insurance pool. 2019-05-06T21:58:54Z 2019-05-06T21:58:54Z 2019-04 Working Paper http://documents.worldbank.org/curated/en/521481556883024663/Annuities-in-N-DC-Pension-Schemes-Design-Heterogeneity-and-Estimation-Issues http://hdl.handle.net/10986/31640 English Social Protection and Jobs Discussion Paper,no. 1912; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	LIFE EXPECTANCY DEFINED CONTRIBUTION PENSION BENEFITS ANNUITIES
spellingShingle	LIFE EXPECTANCY DEFINED CONTRIBUTION PENSION BENEFITS ANNUITIES Palmer, Edward de Gosson de Varennes, Yuwei Zhao Annuities in (N)DC Pension Schemes : Design, Heterogeneity, and Estimation Issues
relation	Social Protection and Jobs Discussion Paper,no. 1912;
description	This paper identifies and discusses four issues in creating annuities in (nonfinancial) defined contribution (NDC) schemes that are essential for systems’ financial stability and fair inter or intragenerational redistribution. The first issue is the choice between incorporating the rate of return into the annuity or into the exogenous indexation. The second issue is in choosing a projection method for life expectancy that produces systematically unbiased estimates. The third issue is at what age the projection of life expectancy is to be fixed over the remaining lifetime of the annuity. The final issue is the prevalence of socioeconomic heterogeneity within the insurance pool.
format	Working Paper
author	Palmer, Edward de Gosson de Varennes, Yuwei Zhao
author_facet	Palmer, Edward de Gosson de Varennes, Yuwei Zhao
author_sort	Palmer, Edward
title	Annuities in (N)DC Pension Schemes : Design, Heterogeneity, and Estimation Issues
title_short	Annuities in (N)DC Pension Schemes : Design, Heterogeneity, and Estimation Issues
title_full	Annuities in (N)DC Pension Schemes : Design, Heterogeneity, and Estimation Issues
title_fullStr	Annuities in (N)DC Pension Schemes : Design, Heterogeneity, and Estimation Issues
title_full_unstemmed	Annuities in (N)DC Pension Schemes : Design, Heterogeneity, and Estimation Issues
title_sort	annuities in (n)dc pension schemes : design, heterogeneity, and estimation issues
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/521481556883024663/Annuities-in-N-DC-Pension-Schemes-Design-Heterogeneity-and-Estimation-Issues http://hdl.handle.net/10986/31640
_version_	1764474821478973440

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

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