The Effect of the Reforms to Compulsion on Annuity Demand

Research output: Contribution to journalArticle (Academic Journal)peer-review

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Abstract

This paper investigates the effect of recent regulatory changes to the compulsory annuitisation of tax-privileged pension savings, on the demand for annuities and other retirement products. We find that the demand for annuities has fallen by almost 75 per cent from its peak in 2012, and the demand for income drawdown products has increased. There is some evidence that people at younger ages and with smaller pension pots are choosing not to annuitise, and hence the average size of an annuity purchase has increased.
Original languageEnglish
Pages (from-to)R47-R54
Number of pages8
JournalNational Institute Economic Review
Volume237
Issue number1
DOIs
Publication statusPublished - 1 Aug 2016

Research Groups and Themes

  • AF Financial Markets

Keywords

  • insurance markets
  • annuities
  • drawdown

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