Re:Rich Retirees Are Hoarding Cash Out of Fear
by FabHK on Tuesday May 16, 2017 @07:31PM
(#14354297)
And a collective insurance-like pension system, where the people dying early subsidise the people dying late. Then everyone just needs to save to the expected age of death, rather than the maximum age of death.
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Re:Rich Retirees Are Hoarding Cash Out of Fear
by bradleyjg on Wednesday May 17, 2017 @11:48AM
(#14359608)
We have a fairly efficient market in (vanilla) annuities which act as a form of longevity insurance.
Re:Rich Retirees Are Hoarding Cash Out of Fear
by FabHK on Thursday May 18, 2017 @12:45PM
(#14368757)
Annuities are great (if administered effectively, which is helped by economies of scale).
The UK has an efficient annuities market, it seems to me. My understanding was that in the US, it was to a large extent a tax-avoidance scheme, rather than a risk-mitigation mechanism, but I don't know enough about it.
Re:Rich Retirees Are Hoarding Cash Out of Fear
by bradleyjg on Thursday May 18, 2017 @02:01PM
(#14369514)
In addition to regular vanilla annuities, for which we have a pretty efficient market, we have these terrible, awful, no good products that are misleadingly called variable annuities.
The variable ones are far more profitable and so get pushed onto people while you need to go seek out someone to sell you an ordinary annuity. They have a deservedly terrible reputation which I fear has tainted the ordinary kind somewhat in the public mind.