Annuities in (N)DC Pension Schemes

• Tác giả: Yuwei Zhao de Gosson de Varennes
• Ngôn ngữ: eng
• Ký hiệu phân loại: 331.25 Other conditions of employment
• Thông tin xuất bản: World Bank, Washington, DC, 2019
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 309261
• Chủ đề: 1. ANNUITIES; 2. DEFINED CONTRIBUTION; 3. LIFE EXPECTANCY; 4. PENSION BENEFITS

Tóm tắt

This paper identifies and discusses four issues in creating annuities in (nonfinancial) defined contribution (NDC) schemes that are essential for systems' financial stability and fair inter or intragenerational redistribution. The first issue is the choice between incorporating the rate of return into the annuity or into the exogenous indexation. The second issue is in choosing a projection method for life expectancy that produces systematically unbiased estimates. The third issue is at what age the projection of life expectancy is to be fixed over the remaining lifetime of the annuity. The final issue is the prevalence of socioeconomic heterogeneity within the insurance pool.