Regulation of Withdrawals in Individual Account Systems

November 1, 1999

Preview Citation

Format: Chicago

Jan Walliser. Regulation of Withdrawals in Individual Account Systems, (USA: International Monetary Fund, 1999) accessed December 22, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Funded mandatory pension systems based on individual accounts are spreading around the world. With the maturation of these systems, regulating the withdrawal of retirement savings will become increasingly important. Government regulation of withdrawals should mandate the purchase of inflation-indexed life annuities exceeding income available from government welfare programs for the retiree and potential survivors. Proper functioning of insurance markets does not, however, require annuitizing the entire account balance. Instead, more flexibility for the choice of withdrawals could be permitted for any remaining funds, helping to tailor income streams to individual needs and living arrangements.

Subject: Aging, Financial institutions, Income, Insurance, Labor, National accounts, Pensions, Population and demographics, Retirement

Keywords: Aging, Annuities market, Annuity, Annuity company, Annuity insurance markets well, Eastern Europe, Family annuity contract, Income, Individual accounts, Insurance, Investment portfolio, Pension reform, Pensions, Refund annuity, Retirement, WP

Publication Details

Pages:

24
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1999/153
Stock No:

WPIEA1531999
ISBN:

9781451857139
ISSN:

1018-5941

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