This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
The Impact of Health Status and Out-of-Pocket Medical Expenditures on Annuity Valuation Author info | Abstract | Publisher info | Download info | Related research | Statistics Cassio M. Turra (University of Pennsylvania)
Olivia S. Mitchell (University of Pennsylvania)
Additional information is available for the following
registered author(s):
This paper describes how differences in health status at retirement can influence the decision to purchase a life annuity. We extend previous research on annuitization decisions by incorporating the effect of health differentials via differences in survival throughout the latter portion of life. Next, we consider how precautionary savings motivated by uncertain out-of-pocket medical expenses influence annuitization decisions. Our results show that annuities become less attractive to people facing uncertain medical expenses. While full annuitization would still be optimal if annuity markets were truly complete and both life- and health-contingent, lacking this, annuity equivalent wealth values are much lower for those in poor health, as compared to persons in good health.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Paper provided by University of Michigan, Michigan Retirement Research Center in its series Working Papers with number
wp086.
Download reference. The following formats are available: HTML ,
plain text ,
BibTeX ,
RIS (EndNote),
ReDIF
Length: 29 pages
Date of creation: Jul 2004Date of revision:
Handle: RePEc:mrr:papers:wp086Contact details of provider: Postal: P.O. Box 1248, Ann Arbor, MI 48104 Phone: (734) 615-0422 Fax: (734) 647-4575 Email: Web page: http://www.mrrc.isr.umich.edu/publications/papers/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (MRRC Administrator).
Keywords: This paper has been announced in the following NEP Reports :
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Jeffrey R. Brown, 1999.
"Are the Elderly Really Over-Annuitized? New Evidence on Life Insurance and Bequests ,"
NBER Working Papers
7193, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Olivia S. Mitchell et al., 1999.
"New Evidence on the Money's Worth of Individual Annuities ,"
American Economic Review ,
American Economic Association, vol. 89(5), pages 1299-1318, December.
[Downloadable!] (restricted)
Other versions: Glenn R. Hubbard & Jonathan Skinner & Stephen P. Zeldes, .
"Precautionary Saving and Social Insurance ,"
Rodney L. White Center for Financial Research Working Papers
3-95, Wharton School Rodney L. White Center for Financial Research.
Other versions:
Glenn R. Hubbard & Jonathan Skinner & Stephen P. Zeldes, .
"Precautionary Saving and Social Insurance ,"
Rodney L. White Center for Financial Research Working Papers
03-95, Wharton School Rodney L. White Center for Financial Research.
R. Glenn Hubbard & Jonathan Skinner & Stephen P. Zeldes, 1995.
"Precautionary Saving and Social Insurance ,"
NBER Working Papers
4884, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Hubbard, R Glenn & Skinner, Jonathan & Zeldes, Stephen P, 1995.
"Precautionary Saving and Social Insurance ,"
Journal of Political Economy ,
University of Chicago Press, vol. 103(2), pages 360-99, April.
[Downloadable!] (restricted) Palumbo, Michael G, 1999.
"Uncertain Medical Expenses and Precautionary Saving Near the End of the Life Cycle ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 66(2), pages 395-421, April.
[Downloadable!] (restricted)
James F. Moore & Olivia S. Mitchell, .
"Projected Retirement Wealth and Saving Adequacy ,"
Pension Research Council Working Papers
98-1, Wharton School Pension Research Council, University of Pennsylvania.
Thomas Davidoff & Jeffrey Brown & Peter Diamond, 2003.
"Annuities And Individual Welfare ,"
Working Papers, Center for Retirement Research at Boston College
2003-11, Center for Retirement Research.
[Downloadable!]
Other versions:
Thomas Davidoff & Jeffrey R. Brown & Peter A. Diamond, 2003.
"Annuities and Individual Welfare ,"
NBER Working Papers
9714, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Thomas Davidoff & Jeffrey R. Brown & Peter A. Diamond, 2005.
"Annuities and Individual Welfare ,"
American Economic Review ,
American Economic Association, vol. 95(5), pages 1573-1590, December.
[Downloadable!] (restricted) John F. Cogan & Olivia S. Mitchell, 2002.
"The Role of Economic Policy in Social Security Reform: Perspectives from the President's Commission ,"
NBER Working Papers
9166, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Michael Hurd & Daniel McFadden & Angela Merrill, 1999.
"Predictors of Mortality Among the Elderly ,"
NBER Working Papers
7440, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
David M. Cutler & Ellen Meara, 1999.
"The Concentration of Medical Spending: An Update ,"
NBER Working Papers
7279, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Jeffrey R. Brown & Mark J. Warshawsky, 2001.
"Longevity-Insured Retirement Distributions from Pension Plans: Market and Regulatory Issues ,"
NBER Working Papers
8064, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Deaton, A. & Grosh, M., 1998.
"Consumption ,"
Papers
191, Princeton, Woodrow Wilson School - Development Studies.
Olivia S. Mitchell & Michael Gordon & Marc M. Twinney, .
"Assessing the Challenges to the Pension System ,"
Pension Research Council Working Papers
95-1, Wharton School Pension Research Council, University of Pennsylvania.
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Kam Ki Tang & Jie Zhang, 2007.
"Morbidity, Mortality, Health Expenditures and Annuitization ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo GmbH.
[Downloadable!]
Access and
download statistics Did you know? RePEc and its associated services are free for contributors and users, and do not accept any advertising.
This page was last updated on 2008-9-18.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .