Payouts in Switzerland: Explaining Developments in Annuitization
Monika Bütler () and
University of St. Gallen Department of Economics working paper series 2010 from Department of Economics, University of St. Gallen
Switzerland is one of the few countries with long-term experience on the payout decisions made by retirees in fully-funded pension plans. Switzerland is also atypical in its unusually high annuitization rates: A majority of retirees covered by mandatory occupational pension plans choose an annuity. This paper will shed light on this extraordinary aspect. It revisits the historical role of occupational pension plans in the provision of old age income, and examines the role of regulation in the payout phase of the scheme. Recent developments in both market conditions and regulations are used to assess the impact of certain determinants of the annuitization decision, such as money’s worth ratios (MWR), means-tested benefits and behavioral factors.
Keywords: Annuity Puzzle; Occupational Pension; Annuity; Lump Sum (search for similar items in EconPapers)
JEL-codes: D81 D91 G23 J26 (search for similar items in EconPapers)
Pages: 32 pages
New Economics Papers: this item is included in nep-age
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:usg:dp2010:2010-06
Access Statistics for this paper
More papers in University of St. Gallen Department of Economics working paper series 2010 from Department of Economics, University of St. Gallen Contact information at EDIRC.
Bibliographic data for series maintained by Martina Flockerzi ().