The choice between an annuity and a lump sum:: Results from Swiss pension funds

• 成果类型: Article; Proceedings Paper
• 署名作者: Buetler, Monika; Teppa, Federica
• 署名单位: University of St Gallen; Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2007.09.003
• 发表日期: 2007
• 页码: 1944-1966
• 关键词: annuity puzzle; occupational pension; annuity; lump sum

摘要

This paper uses unique micro data from Swiss employer-based pension plans to study the annuitization decision at retirement. The administrative nature of our data, though limited with respect to individual background characteristics, allows us to analyze real choices over large retirement balances, rather than subjectively reported intentions to annuitize. We find a strong and robust impact of a utility-based measure of the annuity's value (computed within a life-cycle framework) on individual annuitization rates. Low accumulation of retirement assets is strongly associated with the choice of the lump sum, presumably due to the availability of means-tested social assistance. The sponsor's default option, in most cases the annuity, is also found to be highly influential in the decision to annuitize. (c) 2007 Elsevier B.V. All rights reserved.