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- Title
The Market for Individual Life Annuities and the Reform of Social Security: An Update and Further Analysis.
- Authors
Warshawsky, Mark J.
- Abstract
Current policy discussions about Social Security individual accounts (IAs) emphasize the creation of personal estates rather than the provision of lifelong retirement income. This update of an earlier analysis introduces new empirical evidence and reviews more carefully various policy and administrative considerations in the use of life annuities for the distribution of IA assets, ft confirms that there are good arguments for a system requiring or favoring the annuitization of IAs at retirement. Compared to the current Social Security benefit structure, however, the use of various existing types of individual immediate life annuities can allow for greater freedom of action and expression of preferences among investment types and benefit features, also addressing issues of fairness and allowing for provision of bequests. In particular, a death benefit before annuitization and a cash refund life annuity upon retirement would represent a significant liberalization from the current system.
- Subjects
UNITED States; SOCIAL security; LIFE annuities; GOVERNMENT securities; OLD age assistance; LIFE insurance trusts
- Publication
Benefits Quarterly, 2001, Vol 17, Issue 4, p24
- ISSN
8756-1263
- Publication type
Article