Wharton Pension Research Council Working Papers
 

Title

Annuities and their Derivatives: The Recent Canadian Experience

Document Type

Working Paper

Date of this Version

9-1-2010

Abstract

This chapter surveys recent developments within the Canadian “income annuity” marketplace. We start by computing the Money’s Worth Ratio (MWR) using a unique dataset which includes a decade of Canadian annuity payouts. We then move-on to discuss the Guaranteed Lifetime Withdrawal Benefit (GLWB) product which has recently become available in Canada. This important innovation is extremely popular and shares many characteristics with a conventional income annuity. Finally, we conclude with thoughts on the optimal product allocation within the context of the Canadian retirement portfolio.

Comments

The published version of this Working Paper may be found in the 2011 publication: Securing Lifelong Retirement Income.

Working Paper Number

WP2010-16

Copyright/Permission Statement

Opinions and conclusions are solely those of the author(s) and do not reflect views of the institutions supporting the research, with whom the authors are affiliated, or the Pension Research Council. Copyright 2010 © Pension Research Council of the Wharton School of the University of Pennsylvania. All rights reserved.

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Date Posted: 07 August 2019