TY  - UNPD
A1  - Horneff, Vanya
A1  - Maurer, Raimond
A1  - Mitchell, Olivia S.
T1  - Fixed and variable longevity annuities in defined contribution plans: optimal retirement portfolios taking social security into account
N2  - This paper investigates retirees’ optimal purchases of fixed and variable longevity income annuities using their defined contribution (DC) plan assets and given their expected Social Security benefits. As an alternative, we also evaluate using plan assets to boost Social Security benefits through delayed claiming. We determine that including deferred income annuities in DC accounts is welfare enhancing for all sex/education groups examined. We also show that providing access to well-designed variable deferred annuities with some equity exposure further enhances retiree wellbeing, compared to having access only to fixed annuities. Nevertheless, for the least educated, delaying claiming Social Security is preferred, whereas the most educated benefit more from using accumulated DC plan assets to purchase deferred annuities.
T3  - CFS working paper series - No. 684 
KW  - lifecycle saving
KW  - retirement plan
KW  - annuity
KW  - longevity
KW  - delayed claiming
KW  - household finance
Y1  - 2023
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/68024
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-680241
UR  - https://ssrn.com/abstract=4360581
N1  - We also acknowledge research support from the TIAA Institute as well as funding provided by the German Investment and Asset Management Association (BVI) and the Pension Research Council/Boettner Center at The Wharton School of the University of Pennsylvania.
VL  - January 8, 2023
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -