Can the Longevity Risk Alleviate the Annuitization Puzzle? Empirical Evidence from Dutch Data

Teppa, Federica

doi:10.2139/ssrn.1932699

Cited by 17 publications

(20 citation statements)

References 30 publications

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“…For example, women are more inclined to reply "do not know" to survey questions about their expected retirement age and expected retirement income (Alessie, Van Rooij, and Lusardi, 2011b). Hurd and McGarry (1995) as well as Teppa (2011) report evidence that women tend to underestimate their own life expectancy. Therefore they may insufficiently prepare for retirement.…”

Section: Does the Gender Gap In Financial Literacy Matter?mentioning

confidence: 99%

How Financially Literate Are Women? An Overview and New Insights

et al. 2014

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We document strikingly similar gender differences in financial literacy across countries.When asked to answer questions that measure knowledge of basic financial concepts, women are less likely than men to answer correctly and more likely to indicate that they do not know the answer. In addition, women give themselves lower scores on financial literacy selfassessments than men. Both young and old women show low levels of financial literacy. Moreover, women for whom financial knowledge is likely to be very important-for example widows or single women-also know little about concepts relevant for day-to-day financial decisions. Even women in favorable economic conditions are less financially knowledgeable than men. The gender differences are present for very basic as well as more advanced measures of financial literacy and financial sophistication. This is important because financial literacy has been linked to economic behavior, including retirement planning and wealth accumulation. Women live longer than men and are likely to spend time in widowhood. As a result, improving women's financial literacy is key to helping them prepare for retirement and promoting their financial security.

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Section: Does the Gender Gap In Financial Literacy Matter?mentioning

confidence: 99%

How Financially Literate Are Women? An Overview and New Insights

et al. 2014

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“…For example, women are more inclined to reply "do not know" to survey questions about their expected retirement age and expected retirement income . Hurd and McGarry (1995) as well as Teppa (2011) report evidence that women tend to underestimate their own life expectancy. Therefore they may insufficiently prepare for retirement.…”

Section: Does the Gender Gap In Financial Literacy Matter?mentioning

confidence: 99%

How financially literate are women? An overview and new insights

Bucher‒Koenen

Lusardi

Alessie³

et al. 2014

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“…In contrast to previous work individuals are not asked for survival probabilities (as for example in similar work by McGarry (1995, 2002), Teppa (2011)) but rather for the age that they expect to reach. The survey question proceeds in three steps.…”

Section: Subjective Life Expectancymentioning

confidence: 99%

Subjective Life Expectancy and Private Pensions

Bucher‒Koenen

Kluth

2012

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractOne important parameter in the decision process when buying a private annuity is individuals' subjective life expectancy, because it directly influences the expected rate of return. We examine the market for private annuities in Germany and evaluate potential selection effects based on subjective life expectancy. First individuals are pessimistic about their life span compared to the official life tables.Second we find a significant selection effect based on subjective life expectancy for women invested in private annuity contracts-so-called Riester pensions. For men there seems to be no difference in subjective life expectancy by Riester ownership.Comparing the size of this selection effect with the underlying mark ups in life expectancy that are charged by the insurance industry shows that the latter appears to be in line for women but too high for men. Our findings have strong policy implications. On the one hand miss-perceptions about longevity risk might prevent individuals from providing sufficiently for retirement, on the other hand mandated unisex tariffs appear to prevent men from investing in Riester pensions.

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Can the Longevity Risk Alleviate the Annuitization Puzzle? Empirical Evidence from Dutch Data

Cited by 17 publications

References 30 publications

How Financially Literate Are Women? An Overview and New Insights

How Financially Literate Are Women? An Overview and New Insights

How financially literate are women? An overview and new insights

Subjective Life Expectancy and Private Pensions

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