Optimal annuitization, uncertain survival probabilities, and maxmin preferences

Hippolyte d'Albis and Emmanuel Thibault

PSE-Ecole d'économie de Paris (Postprint) from HAL

Abstract: We consider a life-cycle model with bequest motives, and assume that the individual does not know his/her survival probability and has maxmin utility preferences; we show that it is optimal not to annuitize but to purchase pure life insurance policies instead.

Keywords: Demand for annuities; Uncertain survival probabilities; Uncertainty aversion; Maxmin (search for similar items in EconPapers)
Date: 2012-05
Note: View the original document on HAL open archive server: https://hal.science/hal-00670320v1
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Citations: View citations in EconPapers (3)

Published in Economics Letters, 2012, 115 (2), pp.296-299. ⟨10.1016/j.econlet.2011.12.045⟩

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Journal Article: Optimal annuitization, uncertain survival probabilities, and maxmin preferences (2012)
Working Paper: Optimal annuitization, uncertain survival probabilities, and maxmin preferences (2012)
Working Paper: Optimal annuitization, uncertain survival probabilities, and maxmin preferences (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:hal-00670320

DOI: 10.1016/j.econlet.2011.12.045

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