Optimal annuitization, uncertain survival probabilities, and maxmin preferences
Journal article: We consider a life-cycle model with bequest motives, and assume that the individual does not know his/her survival probability and has maxmin utility preferences; we show that it is optimal not to annuitize but to purchase pure life insurance policies instead.
Author(s)
Hippolyte d’Albis, Emmanuel Thibault
Journal
- Economics Letters
Date of publication
- 2012
Keywords JEL
Keywords
- Demand for annuities
- Uncertain survival probabilities
- Uncertainty aversion
- Maxmin
Pages
- 296-299
URL of the HAL notice
Version
- 1
Volume
- 115