Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/206413 
Year of Publication: 
2019
Series/Report no.: 
CFS Working Paper Series No. 634
Publisher: 
Goethe University Frankfurt, Center for Financial Studies (CFS), Frankfurt a. M.
Abstract: 
In this study, we investigate the wealth decumulation decision from the perspective of a retiree who is averse to the prospect of fully annuitizing her accumulated savings. We field a large online survey of hypothetical product choices for phased drawdown offerings and annuities. While the demand for annuities remains low in our sample, we find significant demand for phased withdrawal products with equity-based asset allocations and flexible payout structures. Consistent with the product choice, the most important self-reported considerations for the wealth decumulation decision are low default risk in the products they purchase, the size of the withdrawal rates, and flexibility in the timing of their withdrawal. As determinants of the decision of how much wealth individuals are willing to draw down, we identify consumers' attitudes towards future economic conditions, the extent to which they are protected against longevity risk, and their desire to leave bequests. Policy implications are discussed.
Subjects: 
retirement planning
phased withdrawal accounts
annuity puzzle
JEL: 
D14
G2
H55
J14
J26
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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