Abstract
Life annuities provide periodic payouts for the duration of life. A specific tax relief is granted to induce individuals to build up such a supplement to the public pension system, since the latter will allow presumably only lower replacement rates in the future. This paper describes the functioning of life annuities and investigates the adequacy of the specific tax relief for this type of old-age provision. Furthermore, the phenomenon of adverse selection is discussed, which entails that persons with low life-expectancy cannot buy an appropriate annuity contract.
| Translated title of the contribution | The 3rd pillar of old-age provision: Savings and life annuities? |
|---|---|
| Original language | German (Austria) |
| Pages (from-to) | 401-411 |
| Journal | Wirtschaftspolitische Blätter |
| Volume | 48 |
| Publication status | Published - 2001 |
Fields of science
- 405002 Agricultural economics
- 502 Economics
- 502001 Labour market policy
- 502002 Labour economics
- 502003 Foreign trade
- 502009 Corporate finance
- 502010 Public finance
- 502012 Industrial management
- 502013 Industrial economics
- 502018 Macroeconomics
- 502020 Market research
- 502021 Microeconomics
- 502025 Econometrics
- 502027 Political economy
- 502039 Structural policy
- 502042 Environmental economics
- 502046 Economic policy
- 502047 Economic theory
- 504014 Gender studies
- 506004 European integration
- 507016 Regional economy
- 303010 Health economics
