Abstract
Retirees without annuities in Hong Kong confront longevity and investment risks. Despite these risks, there is very limited uptake of annuities. This study identifies product and consumer characteristics that are associated with the demand for annuities in Hong Kong. We conduct a discrete choice experiment and distribute a consumer survey among two independent representative samples of workers aged between 40 and 64. Results suggest that a fixed monthly income and a 10-year guarantee period are two significant product characteristics, while a bequest motive, being married, and an understanding of the annuity are consumer characteristics that are associated with the demand for annuities. Being presented the optimal hypothetical annuity product, approximately one-third of middle-aged workers choose to annuitize their retirement savings. The findings and methods of this study can be applied for designing annuity products in other contexts.
Original language | English |
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Pages (from-to) | 170-188 |
Number of pages | 19 |
Journal | Journal of Aging and Social Policy |
Volume | 31 |
Issue number | 2 |
DOIs | |
Publication status | Published - 15 Mar 2019 |
Bibliographical note
Funding Information:This study was supported by a grant from the Central Policy Unit Public Policy Research Scheme (CPU PPR: 2014.A5.005.14E).
Publisher Copyright:
© 2018, © 2018 Taylor & Francis.