Cannon, Edmund and Tonks, Ian (2003) UK annuity rates and pension replacement ratios 1957-2002. Financial Markets Group Discussion Papers (444). Financial Markets Group, The London School of Economics and Political Science, London, UK.
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Abstract
This paper constructs a time series of annuity rates in the UK for 1957-2002, and examines the pricing of UK annuities, and the relationship between the accumulation and decumulation phases of a defined contribution pension scheme by focusing on the properties of the pension replacement ratio. Using data on annuity returns and the returns on other financial assets, the paper simulates replacement ratios, to build up a frequency distribution of the pension replacement ratio for a UK individual. These frequency distributions illustrate the risk in the pension replacement ratio faced by an individual who saves in a typical defined contribution pension scheme.
| Item Type: | Monograph (Discussion Paper) |
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| Official URL: | http://fmg.ac.uk |
| Additional Information: | © 2003 The Authors |
| Divisions: | Financial Markets Group |
| Subjects: | H Social Sciences > HB Economic Theory |
| JEL classification: | E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook > E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation G - Financial Economics > G1 - General Financial Markets > G14 - Information and Market Efficiency; Event Studies H - Public Economics > H5 - National Government Expenditures and Related Policies > H55 - Social Security and Public Pensions |
| Date Deposited: | 12 Aug 2009 11:38 |
| Last Modified: | 13 Sep 2024 19:50 |
| URI: | http://eprints.lse.ac.uk/id/eprint/24832 |
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