Title: Betting on death and capital markets in retirement
Description: "Retirees must draw down their accumulated assets in an orderly fashion, so as not to exhaust their funds too soon.  We compare alternative phased withdrawal strategies to a life annuity benchmark using German data; one particular phased withdrawal rule seems attractive, as it offers relatively low expected shortfall risk, good expected payouts for the retiree during his life, and some bequest potential; results are similar for the US case.  Delayed annuitization may also appeal, as it offers higher expected benefits with lower expected shortfalls.  Requiring unisex mortality tables in annuity pric-ing raises women's risks under a phased withdrawal program"--National Bureau of Economic Research web site.
Subjects: Defined contribution pension plans, Life annuities, Retirement income
Places: Germany