Annuity Valuation, Long-Term Care, and Bequest Motives

John Ameriks, Andrew Caplin, Steven Laufer, Stijn Van Nieuwerburgh

    Research output: Chapter in Book/Report/Conference proceedingChapter

    Abstract

    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. Earlier research has stressed a more holistic approach, which focuses on the match between resources and spending needs. Using this formulation this chapter estimates annuity values given long-term care concerns and bequest motives, where these estimated values are consistent with low observed demand for standard annuities. The chapter extends this model to value non-standard annuities with various security-enhancing features that may be of value to retirees.

    Original languageEnglish (US)
    Title of host publicationRecalibrating Retirement Spending and Saving
    PublisherOxford University Press
    ISBN (Electronic)9780191720734
    ISBN (Print)9780199549108
    DOIs
    StatePublished - Jan 1 2009

    Fingerprint

    Annuities
    Long-term care
    Bequest motive
    Retirement
    Income
    Holistic approach
    Social security system
    Financial security
    Resources

    Keywords

    • Bequest
    • Consumption
    • Health shock
    • Healthcare
    • Long-term-care insurance
    • Longevity insurance
    • Medicaid aversion
    • Precautionary motive
    • Reversible annuity

    ASJC Scopus subject areas

    • Business, Management and Accounting(all)

    Cite this

    Ameriks, J., Caplin, A., Laufer, S., & Van Nieuwerburgh, S. (2009). Annuity Valuation, Long-Term Care, and Bequest Motives. In Recalibrating Retirement Spending and Saving Oxford University Press. https://doi.org/10.1093/acprof:oso/9780199549108.003.0011

    Annuity Valuation, Long-Term Care, and Bequest Motives. / Ameriks, John; Caplin, Andrew; Laufer, Steven; Van Nieuwerburgh, Stijn.

    Recalibrating Retirement Spending and Saving. Oxford University Press, 2009.

    Research output: Chapter in Book/Report/Conference proceedingChapter

    Ameriks, J, Caplin, A, Laufer, S & Van Nieuwerburgh, S 2009, Annuity Valuation, Long-Term Care, and Bequest Motives. in Recalibrating Retirement Spending and Saving. Oxford University Press. https://doi.org/10.1093/acprof:oso/9780199549108.003.0011
    Ameriks J, Caplin A, Laufer S, Van Nieuwerburgh S. Annuity Valuation, Long-Term Care, and Bequest Motives. In Recalibrating Retirement Spending and Saving. Oxford University Press. 2009 https://doi.org/10.1093/acprof:oso/9780199549108.003.0011
    Ameriks, John ; Caplin, Andrew ; Laufer, Steven ; Van Nieuwerburgh, Stijn. / Annuity Valuation, Long-Term Care, and Bequest Motives. Recalibrating Retirement Spending and Saving. Oxford University Press, 2009.
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