IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-031-64273-9_12.html

The Market Value of Optimal Annuitization and Bequest Motives

In: Mathematical and Statistical Methods for Actuarial Sciences and Finance

Author

Listed:
  • Matteo Buttarazzi

    (Dipartimento di Metodi e Modelli per L’Economia, Il Territorio e la Finanza, Sapienza-Università di Roma)

  • Gabriele Stabile

    (Dipartimento di Metodi e Modelli per L’Economia, Il Territorio e la Finanza, Sapienza-Università di Roma)

Abstract

Since the seminal contribution of Yaari (1965), who showed that individuals with no bequest motive should convert all their retirement wealth into annuities, a number of papers have analysed the annuitization decision under the so-called all or nothing institutional arrangement, where immediate lifetime annuities are purchased just at a one point in time. In this paper, we investigate the effect of linear bequest motives on the annuitization decision for a retired individual who maximizes the market value of future cash flows. Finally, we present numerical examples analyzing optimal annuitization under strong or weak bequest motives.

Suggested Citation

  • Matteo Buttarazzi & Gabriele Stabile, 2024. "The Market Value of Optimal Annuitization and Bequest Motives," Springer Books, in: Marco Corazza & Frédéric Gannon & Florence Legros & Claudio Pizzi & Vincent Touzé (ed.), Mathematical and Statistical Methods for Actuarial Sciences and Finance, pages 67-73, Springer.
    • Handle: RePEc:spr:sprchp:978-3-031-64273-9_12
    DOI: 10.1007/978-3-031-64273-9_12
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-031-64273-9_12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.