Compulsory Annuitisation: A Policy Option for Australia?
Abstract The use of lifetime annuities is one obvious candidate to deliver guaranteed income in retirement. This paper quantifies the marginal increase in income to a single male when compelled to purchase a lifetime annuity from superannuation savings, compared to the current position of volunta...
Main Authors: | , |
---|---|
Format: | Article |
Language: | English |
Published: |
University of Wollongong
2013-09-01
|
Series: | Australasian Accounting, Business and Finance Journal |
Subjects: | |
Online Access: | http://ro.uow.edu.au/aabfj/vol7/iss3/2 |
id |
doaj-b9f3a45d04ba47c78f413d470452c922 |
---|---|
record_format |
Article |
spelling |
doaj-b9f3a45d04ba47c78f413d470452c9222020-11-25T00:26:25ZengUniversity of WollongongAustralasian Accounting, Business and Finance Journal1834-20001834-20192013-09-0173530http://dx.doi.org/10.14453/aabfj.v7i3.2Compulsory Annuitisation: A Policy Option for Australia?Taleitha O'Meara0Aaron Bruhn1Australian National UniversityAustralian National UniversityAbstract The use of lifetime annuities is one obvious candidate to deliver guaranteed income in retirement. This paper quantifies the marginal increase in income to a single male when compelled to purchase a lifetime annuity from superannuation savings, compared to the current position of voluntary annuitisation in the Australian market. It is found that significant increases in average income are possible under compulsion, with an associated decrease in the cost of the age pension. Future mortality is shown to be the key area of sensitivity. The critical importance of future age pension eligibility rules being adaptable in line with mortality changes is demonstrated.http://ro.uow.edu.au/aabfj/vol7/iss3/2Annuitiessuperannuationcompulsory annuitisationretirement incomeannuitization |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Taleitha O'Meara Aaron Bruhn |
spellingShingle |
Taleitha O'Meara Aaron Bruhn Compulsory Annuitisation: A Policy Option for Australia? Australasian Accounting, Business and Finance Journal Annuities superannuation compulsory annuitisation retirement income annuitization |
author_facet |
Taleitha O'Meara Aaron Bruhn |
author_sort |
Taleitha O'Meara |
title |
Compulsory Annuitisation: A Policy Option for Australia? |
title_short |
Compulsory Annuitisation: A Policy Option for Australia? |
title_full |
Compulsory Annuitisation: A Policy Option for Australia? |
title_fullStr |
Compulsory Annuitisation: A Policy Option for Australia? |
title_full_unstemmed |
Compulsory Annuitisation: A Policy Option for Australia? |
title_sort |
compulsory annuitisation: a policy option for australia? |
publisher |
University of Wollongong |
series |
Australasian Accounting, Business and Finance Journal |
issn |
1834-2000 1834-2019 |
publishDate |
2013-09-01 |
description |
Abstract
The use of lifetime annuities is one obvious candidate to deliver guaranteed income in retirement. This paper
quantifies the marginal increase in income to a single male when compelled to purchase a lifetime annuity
from superannuation savings, compared to the current position of voluntary annuitisation in the Australian
market. It is found that significant increases in average income are possible under compulsion, with an
associated decrease in the cost of the age pension. Future mortality is shown to be the key area of sensitivity.
The critical importance of future age pension eligibility rules being adaptable in line with mortality changes is
demonstrated. |
topic |
Annuities superannuation compulsory annuitisation retirement income annuitization |
url |
http://ro.uow.edu.au/aabfj/vol7/iss3/2 |
work_keys_str_mv |
AT taleithaomeara compulsoryannuitisationapolicyoptionforaustralia AT aaronbruhn compulsoryannuitisationapolicyoptionforaustralia |
_version_ |
1725344160456638464 |