Abstract
An individual who purchases a lifetime annuity is guaranteed to receive an income for life. As such this purchase would confer protection against investment and longevity risk for the individual in retirement. Despite these advantages, annuity sales in voluntary markets generally remain low. Reasons for this state of affairs from the current literature are reviewed, and further reasons particular to the Australian context are suggested. This contributes to an understanding of the factors that underlie the lack of popularity in contexts other than Australia as well.
Original language | English |
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Pages (from-to) | 47-57 |
Journal | Australian Journal of Actuarial Practice |
Volume | 3 |
Publication status | Published - 2015 |