How Should We Insure Longevity Risk in Pensions and Social Security?

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

As baby boomers approach retirement, individuals and policymakers are increasingly concerned about retirement income security. Thanks to dramatic advances in life expectancy over the last century, today's typical 65-year old man and woman can expect, on average, to live to ages 81 and 85 respectively. Perhaps even more impressive, over 17 percent of 65-year old men and over 31 percent of 65-year old women are expected to live to age 90 or beyond. Most people would agree with President Clinton that increasing life expectancy is quot;something wonderful.quot; However, uncertainty about length of life carries the risk that individuals may outlive their resources and be forced to substantially reduce their living standards at advanced ages. This issue in brief summarizes a growing body of research on the important role of annuities in the U.S. retirement system.
Original languageEnglish (US)
Title of host publicationThe Future of Social Insurance
Subtitle of host publicationIncremental Action or Fundamental Reform?
EditorsPeter Edelman, Dallas L Salisbury, Pamela J Larson
PublisherBrookings Institution Press
Pages148-184
ISBN (Electronic)978-0-8157-9847-7
StatePublished - 2002

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