Survival Ambiguity and Welfare

@article{Caliendo2017SurvivalAA,
  title={Survival Ambiguity and Welfare},
  author={Frank N. Caliendo and Aspen Gorry and Sita Nataraj Slavov},
  journal={Political Economy: Government Expenditures \& Related Policies eJournal},
  year={2017}
}
Optimal Retirement Products under Subjective Mortality Beliefs
t has been shown in Milevsky and Salisbury (2015) that, given actuarially fair pricing, annuities yield higher lifetime utility levels than tontines. Tontines are increasingly popular retirement
YOLO: Mortality Beliefs and Household Finance Puzzles
Subjective mortality beliefs a ect pre- and post-retirement consumption and savings decisions, as well as portfolio allocation. New survey evidence shows that individuals overestimate their mortality
How Accurate Are Retirees’ Assessments of Their Retirement Risk?
Retirees with limited financial resources face numerous risks, including out-living their money (longevity risk), investment losses (market risk), unexpected health expenses (health risk), the
Optimal design of private and occupational retirement plans
Increases in the life expectancy, the low interest rate environment and the tightening solvency regulation have led to the rebirth of tontines. Compared to annuities, where insurers bear all the
ON THE OPTIMAL COMBINATION OF ANNUITIES AND TONTINES
Abstract Tontines, retirement products constructed in such a way that the longevity risk is shared in a pool of policyholders, have recently gained vast attention from researchers and practitioners.
Expectations Data in Structural Microeconomic Models
A growing literature uses now widely available data on beliefs and expectations in the estimation of structural models. In this chapter, we review this literature, with an emphasis on models of

References

SHOWING 1-10 OF 61 REFERENCES
Ambiguous life expectancy and the demand for annuities
In this paper, ambiguity aversion to uncertain survival probabilities is introduced in a static life-cycle model with a bequest motive to study the optimal demand for annuities. Provided that
A Life-Cycle Model with Ambiguous Survival Beliefs
TLDR
This analysis shows that agents with ambiguous survival beliefs save less than originally planned, exhibit undersaving at younger ages, and hold larger amounts of assets in old age than their rational expectations counterparts who correctly assess their survival probabilities.
Social Security is NOT a Substitute for Annuities
Common wisdom suggests that a fully-funded actuarially fair social security system must increase welfare when households face longevity risk and annuity markets are missing. This wisdom is based on
Social Security is NOT a Substitute for Annuity Markets
The Economic Theory of Annuities
Annuities are financial products that guarantee the holder a fixed return so long as the holder remains alive, thereby providing insurance against lifetime uncertainty. The terms of these contracts
YOLO: Mortality Beliefs and Household Finance Puzzles
Subjective mortality beliefs a ect pre- and post-retirement consumption and savings decisions, as well as portfolio allocation. New survey evidence shows that individuals overestimate their mortality
Uncertainty resolution and the timing of annuity purchases
New Evidence on the Money's Worth of Individual Annuities
This paper presents new information on the expected present discounted value of payouts on individual life annuities. The annuity we examine is the single premium immediate life annuity, an insurance
Optimal Annuitization with Stochastic Mortality and Correlated Medical Costs
The conventional wisdom since Yaari (1965) is that households without a bequest motive should fully annuitize their investments. Numerous frictions do not break this sharp result. We modify the Yaari
Risk Aversion and the Value of Risk to Life
The standard literature on the value of life relies on Yaari’s (1965) model, which includes an implicit assumption of risk neutrality with respect to life duration. To overpass this limitation, we
...
...