Tag: private annuity market
If Social Security sold annuities, would it provide the same amounts to men and women? My previous post on the idea of allowing workers to buy cheap inflation-indexed annuities through Social Security with some of their 401(k) holdings raised a question: would men and women get the same monthly benefit for their premium as under…
Abstract Purchasing an annuity insures an individual against the risk of outliving their money, by promising a steady stream of income until death. The value of annuities is high in theory, but in practice annuity markets tend to function poorly, with low annuitization rates and high markups. Chile provides an interesting counterexample to this phenomenon,…
