Longevity, Health and Housing Risks Management in Retirement

Pierre-Carl Michaud and Pascal St-Amour

No 31038, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Annuities, long-term care insurance and reverse mortgages remain puzzlingly unpopular to manage post-retirement longevity, health and housing price risks. We analyze the lack of interest using a flexible life-cycle model structurally estimated with a unique stated-preference survey experiment of Canadian households. High risk aversion, preference for early resolution of uncertainty, strong discounting of valuation in disability states, housing substitutability and bequest motives play key roles in explaining most of the limited demand. The remaining disinterest is accounted for by information frictions and inertia. We also document evidence of public crowding out, spousal co-insurance and of responsiveness to products bundling.

JEL-codes: G51 G53 I13 J14 (search for similar items in EconPapers)
Date: 2023-03
New Economics Papers: this item is included in nep-age, nep-des, nep-dge, nep-hea, nep-mac, nep-rmg, nep-upt and nep-ure
Note: AG
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Citations: View citations in EconPapers (4)

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Working Paper: Longevity, Health and Housing Risks Management in Retirement (2023)
Working Paper: Longevity, Health and Housing Risks Management in Retirement (2023)
Working Paper: Longevity, Health and Housing Risks Management in Retirement (2023)
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