Determinants of the stated probability of purchase for longevity insurance

Michael A. Guillemette, Terrance K. Martin, Benjamin F. Cummings, Russell N. James

Research output: Contribution to journalArticlepeer-review

4 Scopus citations

Abstract

We study the determinants of the stated probability of purchase for a deferred annuity that pays out at age 80 or 85, which we reframe as "longevity insurance", using the Survey of Household Financial and Risk Management. Our results indicate that younger cohorts and women are more likely to express a desire to purchase longevity insurance in the future. The stated probability of purchase for longevity insurance was lower for respondents with greater home equity and higher coefficients of relative risk aversion. Our results may be of particular interest to policymakers, annuity companies and retirement plan providers.

Original languageEnglish
Pages (from-to)4-23
Number of pages20
JournalGeneva Papers on Risk and Insurance: Issues and Practice
Volume41
Issue number1
DOIs
StatePublished - Jan 1 2016

Keywords

  • annuitisation
  • deferred annuity
  • longevity insurance

Fingerprint Dive into the research topics of 'Determinants of the stated probability of purchase for longevity insurance'. Together they form a unique fingerprint.

Cite this