The Australian Annuity Market
In Australia, a means-tested old-age public pension is paid from general tax revenues. A full pension (equivalent to roughly a quarter of the average wage) is currently paid to more than half the aged population, and a reduced pension is paid to an...
| Main Author: | |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2000/11/717422/australian-annuity-market http://hdl.handle.net/10986/19769 |
| id |
okr-10986-19769 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-197692021-04-23T14:03:44Z The Australian Annuity Market Knox, David M. ACTUARIES ADVERSE SELECTION ANNUITIES ANNUITY ANNUITY MARKETS ANNUITY PAYMENT ANNUITY PROVIDERS ANNUITY TABLE ASSETS BENCHMARK BOND RATE CPI DEVELOPED COUNTRIES DISCOUNTED VALUE ENTITLEMENTS EXPECTED PRESENT VALUE EXPECTED PRESENT VALUES FUTURE MORTALITY IMPROVEMENTS GOVERNMENT BONDS GOVERNMENT REGULATIONS GOVERNMENT SECURITIES INDEXATION INFLATION INSURANCE INSURANCE COMPANY INSURANCE INDUSTRY INSURANCE PRODUCTS INTEREST RATE INTEREST RATES INVESTMENT PRODUCTS LIFE ANNUITIES LIFE ANNUITY LIFE EXPECTANCY LIFE INSURANCE LIFE INSURANCE COMPANIES LONGEVITY INSURANCE LONGEVITY RISK MORTALITY MORTALITY TABLES OCCUPATIONAL PENSIONS OLD-AGE PENSIONS PENSION FUNDS PENSION INSURANCE PENSION SYSTEM POLICY RESEARCH PREMIUMS PRIVATE SECTOR PURCHASE PRICE RATES REINSURANCE RESERVES RETIREES RETIREMENT RETIREMENT BENEFITS RETIREMENT INCOME RETIREMENT SAVINGS SAVINGS SCHEDULED WITHDRAWALS SECURITIES SOCIAL SECURITY SOLVENCY TAX RATES TAX REVENUES In Australia, a means-tested old-age public pension is paid from general tax revenues. A full pension (equivalent to roughly a quarter of the average wage) is currently paid to more than half the aged population, and a reduced pension is paid to another quarter of the aged population. About 20 percent receive no old-age public pension because of the level of their income or assets. There is also a compulsory system under which employers contribute at least 7 percent of salaries into a superannuation plan for the vast majority of employees. (This minimum rate will gradually rise to 9 percent in 2002.) More than 80 percent of superannuation benefits are received as lump sums; when public sector employees are excluded, the figure rises to almost 90 percent. The market for private life annuities with longevity insurance is very small. Greater use is made of allocated annuities, which are similar to income drawdowns in the United Kingdom or scheduled withdrawals in Latin American countries. The value of life annuities, measured by the money's worth ratio, compares favorably with that of annuities available in the United Kingdom and United States. But these ratios are calculated on the basis of conservative government bond yields. Many investors prefer allocated annuities--which are perceived to offer considerable advantages in flexibility and higher potential returns--despite the absence of longevity insurance. 2014-08-27T18:31:09Z 2014-08-27T18:31:09Z 2000-11 http://documents.worldbank.org/curated/en/2000/11/717422/australian-annuity-market http://hdl.handle.net/10986/19769 English en_US Policy Research Working Paper;No. 2495 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Australia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACTUARIES ADVERSE SELECTION ANNUITIES ANNUITY ANNUITY MARKETS ANNUITY PAYMENT ANNUITY PROVIDERS ANNUITY TABLE ASSETS BENCHMARK BOND RATE CPI DEVELOPED COUNTRIES DISCOUNTED VALUE ENTITLEMENTS EXPECTED PRESENT VALUE EXPECTED PRESENT VALUES FUTURE MORTALITY IMPROVEMENTS GOVERNMENT BONDS GOVERNMENT REGULATIONS GOVERNMENT SECURITIES INDEXATION INFLATION INSURANCE INSURANCE COMPANY INSURANCE INDUSTRY INSURANCE PRODUCTS INTEREST RATE INTEREST RATES INVESTMENT PRODUCTS LIFE ANNUITIES LIFE ANNUITY LIFE EXPECTANCY LIFE INSURANCE LIFE INSURANCE COMPANIES LONGEVITY INSURANCE LONGEVITY RISK MORTALITY MORTALITY TABLES OCCUPATIONAL PENSIONS OLD-AGE PENSIONS PENSION FUNDS PENSION INSURANCE PENSION SYSTEM POLICY RESEARCH PREMIUMS PRIVATE SECTOR PURCHASE PRICE RATES REINSURANCE RESERVES RETIREES RETIREMENT RETIREMENT BENEFITS RETIREMENT INCOME RETIREMENT SAVINGS SAVINGS SCHEDULED WITHDRAWALS SECURITIES SOCIAL SECURITY SOLVENCY TAX RATES TAX REVENUES |
| spellingShingle |
ACTUARIES ADVERSE SELECTION ANNUITIES ANNUITY ANNUITY MARKETS ANNUITY PAYMENT ANNUITY PROVIDERS ANNUITY TABLE ASSETS BENCHMARK BOND RATE CPI DEVELOPED COUNTRIES DISCOUNTED VALUE ENTITLEMENTS EXPECTED PRESENT VALUE EXPECTED PRESENT VALUES FUTURE MORTALITY IMPROVEMENTS GOVERNMENT BONDS GOVERNMENT REGULATIONS GOVERNMENT SECURITIES INDEXATION INFLATION INSURANCE INSURANCE COMPANY INSURANCE INDUSTRY INSURANCE PRODUCTS INTEREST RATE INTEREST RATES INVESTMENT PRODUCTS LIFE ANNUITIES LIFE ANNUITY LIFE EXPECTANCY LIFE INSURANCE LIFE INSURANCE COMPANIES LONGEVITY INSURANCE LONGEVITY RISK MORTALITY MORTALITY TABLES OCCUPATIONAL PENSIONS OLD-AGE PENSIONS PENSION FUNDS PENSION INSURANCE PENSION SYSTEM POLICY RESEARCH PREMIUMS PRIVATE SECTOR PURCHASE PRICE RATES REINSURANCE RESERVES RETIREES RETIREMENT RETIREMENT BENEFITS RETIREMENT INCOME RETIREMENT SAVINGS SAVINGS SCHEDULED WITHDRAWALS SECURITIES SOCIAL SECURITY SOLVENCY TAX RATES TAX REVENUES Knox, David M. The Australian Annuity Market |
| geographic_facet |
East Asia and Pacific Australia |
| relation |
Policy Research Working Paper;No. 2495 |
| description |
In Australia, a means-tested old-age
public pension is paid from general tax revenues. A full
pension (equivalent to roughly a quarter of the average
wage) is currently paid to more than half the aged
population, and a reduced pension is paid to another quarter
of the aged population. About 20 percent receive no old-age
public pension because of the level of their income or
assets. There is also a compulsory system under which
employers contribute at least 7 percent of salaries into a
superannuation plan for the vast majority of employees.
(This minimum rate will gradually rise to 9 percent in
2002.) More than 80 percent of superannuation benefits are
received as lump sums; when public sector employees are
excluded, the figure rises to almost 90 percent. The market
for private life annuities with longevity insurance is very
small. Greater use is made of allocated annuities, which are
similar to income drawdowns in the United Kingdom or
scheduled withdrawals in Latin American countries. The value
of life annuities, measured by the money's worth ratio,
compares favorably with that of annuities available in the
United Kingdom and United States. But these ratios are
calculated on the basis of conservative government bond
yields. Many investors prefer allocated annuities--which are
perceived to offer considerable advantages in flexibility
and higher potential returns--despite the absence of
longevity insurance. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Knox, David M. |
| author_facet |
Knox, David M. |
| author_sort |
Knox, David M. |
| title |
The Australian Annuity Market |
| title_short |
The Australian Annuity Market |
| title_full |
The Australian Annuity Market |
| title_fullStr |
The Australian Annuity Market |
| title_full_unstemmed |
The Australian Annuity Market |
| title_sort |
australian annuity market |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2000/11/717422/australian-annuity-market http://hdl.handle.net/10986/19769 |
| _version_ |
1764440595551485952 |