Options
Monika Bütler
Title
Prof. Dr. Dr. h.c.
Last Name
Bütler
First name
Monika
Phone
+41 71 224 23 17
Twitter
@MonikaBuetler
Blog
Now showing
1 - 3 of 3
-
PublicationHow Much Does Annuity Demand React to a Large Price Change?In this paper, we present new evidence for the effect of changes in annuity prices on the decision to annuitize. We exploit an unprecedented change in policy in several Swiss occupational pension plans. There is an implied 8 percent reduction in the rate at which retirement capital is translated into an annuity, and this represents a net present value loss of CHF 18,500 (around US$ 20,000). To estimate the impact of this change, we use data from companies that changed their prices and from one large company that did not. We find that the price change reduces the propensity to annuitize among affected individuals by 16.8 percentage points.Type: journal articleJournal: Scandinavian Journal of EconomicsVolume: 115Issue: 3DOI: 10.1111/sjoe.12022
Scopus© Citations 11 -
PublicationThe Role of the Annuity's Value on the Decision (Not) to Annuitize: Evidence from a Large Policy Change : with Stefan Staubli, Graziella ZitoThis paper presents new evidence on how the annuitization decision is affected by changes in the annuity's value. We take advantage of an unprecendented change in policy, which in 2004 moderated the super-mandatory Swiss occupational pension scheme: The 20 percent reduction in the rate at which retirement capital is translated into a life-long annuity equates to a net present value loss of approximately 20'000 SFR (20'000 US$) for the average retiree. Using administrative data and correcting for anticipation effects, we show that due to the change in policy there was an approximately 8 percentage point change in the share of men choosing to annuitize their savings. We also show that the estimated responsiveness of the cash-out decision to variations in a utility based measure for the annuity value is comparable to results of previous studies, which employed completely different sources of variation in the annuity's value.Type: discussion paperIssue: 2010-05
-
PublicationThe Role ot the Annuity's Value on the Decision (Not) to Annuitize: Evidence from a large Policy Change( 2008-08-01)This paper presents new evidence on how the annuitization decision is affected by changes in the annuity's value. We take advantage of an unprecendented change in policy, which in 2004 moderated the supermandatory Swiss occupational pension scheme: The 20 percent reduction in the rate at which retirement capital is translated into a life-long annuity equates to a net present value loss of approximately 20'000 SFR (20'000 US$) for the average retiree. Using administrative data and correcting for anticipation effects, we show that due to the change in policy there was an approximately 8 percentage point change in the share of men choosing to annuitize their savings. We also show that the estimated responsiveness of the cash-out decision to variations in a utility based measure for the annuity value is comparable to results of previous studies, which employed completely different sources of variation in the annuity's value.Type: discussion paperIssue: No. 6930