UK annuity rates and pension replacement ratios 1957-2002

Edmund Cannon and Ian Tonks

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper constructs a time series of annuity rates in the UK for 1957-2002, and examines the pricing of UK annuities, and the relationship between the accumulation and decumulation phases of a defined contribution pension scheme by focusing on the properties of the pension replacement ratio. Using data on annuity returns and the returns on other financial assets, the paper simulates replacement ratios, to build up a frequency distribution of the pension replacement ratio for a UK individual. These frequency distributions illustrate the risk in the pension replacement ratio faced by an individual who saves in a typical defined contribution pension scheme.

Keywords: annuities; annuity markets; pension replacement ratio (search for similar items in EconPapers)
JEL-codes: E62 G14 H55 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2003-04-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://eprints.lse.ac.uk/24832/ Open access version. (application/pdf)

Related works:
Working Paper: UK Annuity Rates And Pension Replacement Ratios 1957-2002 (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:24832

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