UK Annuity Rates And Pension Replacement Ratios 1957-2002
AbstractThis paper constructs a time series of annuity rates in the UK for 1957-2002, and examines the pricing of UK annuities, and the relationship between the accumulation and decumulation phases of a defined contribution pension scheme by focusing on the properties of the pension replacement ratio. Using data on annuity returns and the returns on other financial assets, the paper simulates replacement ratios, to build up a frequency distribution of the pension replacement ratio for a UK individual. These frequency distributions illustrate the risk in the pension replacement ratio faced by an individual who saves in a typical defined contribution pension scheme.
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Bibliographic InfoPaper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2004 with number 71.
Date of creation: 17 Sep 2004
Date of revision:
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Other versions of this item:
- Edmund Cannon & Ian Tonks, 2003. "UK annuity rates and pension replacement ratios 1957-2002," LSE Research Online Documents on Economics 24832, London School of Economics and Political Science, LSE Library.
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
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Munich Reprints in Economics
20028, University of Munich, Department of Economics.
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- Angelo Marano & Carlo Mazzaferro & Marcello Morciano, 2012.
"The strengths and failures of incentive mechanisms in notional defined contribution pension systems,"
Giornale degli Economisti,
GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 71(1), pages 33-70, October.
- A. Marano & C. Mazzaferro & M. Morciano, 2011. "The strengths and failures of incentive mechanisms in notional defined contribution pension systems," Working Papers wp799, Dipartimento Scienze Economiche, Universita' di Bologna.
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