Why do we postpone annuity purchases?

d’Albis, Hippolyte and Andrei Kalk
Authors registered in the RePEc Author Service: Hippolyte d'Albis

Journal of Mathematical Economics, 2021, vol. 95, issue C

Abstract: This paper seeks to explain why annuity purchases are postponed to a later age. We consider an overlapping generations model with uncertain lifetime and two types of annuities. It is shown that, if the economy is dynamically inefficient, individuals demand annuities without delay. However, if it is efficient, annuity purchases are postponed. We also show that these results are robust to several extensions.

Keywords: Annuity purchases; Overlapping generations; Postponement; Annuity pricing (search for similar items in EconPapers)
Date: 2021
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Related works:
Working Paper: Why do we postpone annuity purchases? (2021)
Working Paper: Why do we postpone annuity purchases? (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:mateco:v:95:y:2021:i:c:s0304406821000380

DOI: 10.1016/j.jmateco.2021.102500

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