Wharton Pension Research Council Working Papers
 

Title

Longevity Risk and Annuities in Singapore

Document Type

Working Paper

Date of this Version

10-1-2009

Abstract

This chapter explores the current annuity market in Singapore and discusses the pros and cons of a proposal to mandate annuitization under the Singaporean Central Provident Fund (CPF). We evaluate the pricing of various annuity policies in order to assess whether plan participants might benefit from higher annuity returns per dollar premium and lower adverse selection costs under the new annuitization mandate. Our results indicate that private annuity providers currently offer good value-for-money annuities, with money’s worth values in line with those found for other developed countries. This has implications for proposals to mandate annuitization.

Comments

The published version of this Working Paper may be found in the 2010 publication: Reorienting Retirement Risk Management.

Working Paper Number

WP2009-20

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 2009 © Pension Research Council of the Wharton School of the University of Pennsylvania. All rights reserved.

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Date Posted: 23 August 2019