Date of this Version
Financial security in retirement has traditionally meant having a steady flow of annuity income as long as one lives, a definition enshrined in the Social Security system. Our earlier research has stressed a more holistic approach, which focuses on the match between resources and spending needs. This formulation enables us to estimate annuity values given long term care concerns and bequest motives, where these estimated values are consistent with low observed demand for standard annuities. This chapter uses this model to value non-standard annuities with various security-enhancing features that we believe may be of value to retirees.
long-term care, annuities, financial security, retirement
Working Paper Number
All findings, interpretations, and conclusions of this paper represent the views of the author(s) and not those of the Wharton School or the Pension Research Council. © 2007 Pension Research Council of the Wharton School of the University of Pennsylvania. All rights reserved.
We are grateful to David McCarthy for helpful comments and suggestions.
Date Posted: 17 December 2019