Tag: annuity demand
The brief’s key findings are: Few people buy annuities, which has long puzzled researchers. This study assesses the relative importance of two potential reasons for this low demand: annuity prices are based on the longer objective life expectancy of those who buy them, making them expensive for others; and people in their 50s and 60s are too…
Abstract Objective life expectancy and subjective survival pessimism (defined as the difference between objective and subjective life expectancy) may both affect the demand for annuities. The question this project answers is: how do these two explanations contribute to annuitization decisions in practice? To explore this question, the analysis estimates regression models that include objective lif…
