{"id":8321,"date":"2020-07-09T09:15:17","date_gmt":"2020-07-09T08:15:17","guid":{"rendered":"http:\/\/www.economicsobservatory.com\/ongoing-research\/covid-19-and-the-demand-for-flexible-annuities"},"modified":"2020-07-09T09:15:17","modified_gmt":"2020-07-09T08:15:17","slug":"covid-19-and-the-demand-for-flexible-annuities","status":"publish","type":"ongoing-research","link":"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/covid-19-and-the-demand-for-flexible-annuities","title":{"rendered":"Covid-19 and the demand for flexible annuities"},"content":{"rendered":"<p>The demand for voluntary lifetime annuities is low. Two potential driving mechanisms behind this phenomenon are uninsurable risk early in life and financial illiteracy. Covid-19 generates a large amount of uncertainty for workers. We measure preferences for simplified and more flexible annuities. To this end, we conduct a stated choice experiment using vignettes in which respondents choose between hypothetical retirement products which vary in price, simplicity and flexibility. We estimate the Willingness To Pay (WTP) for simplicity and flexibility using a mixed logit model. Furthermore, we distinguish between sectors as well as between workers who worry about Covid-19 and those who don't. Finally, we take into account individual beliefs and preferences such as subjective life expectancy, bequest motives and present bias.<\/p>\n<p><\/p>\n","protected":false},"template":"","categories":[],"frequency":[],"type_of_data":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Covid-19 and the demand for flexible annuities - Economics Observatory<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/covid-19-and-the-demand-for-flexible-annuities\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Covid-19 and the demand for flexible annuities - Economics Observatory\" \/>\n<meta property=\"og:description\" content=\"The demand for voluntary lifetime annuities is low. Two potential driving mechanisms behind this phenomenon are uninsurable risk early in life and financial illiteracy. Covid-19 generates a large amount of uncertainty for workers. We measure preferences for simplified and more flexible annuities. To this end, we conduct a stated choice experiment using vignettes in which [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/covid-19-and-the-demand-for-flexible-annuities\" \/>\n<meta property=\"og:site_name\" content=\"Economics Observatory\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@econobservatory\" \/>\n<meta name=\"twitter:label1\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/covid-19-and-the-demand-for-flexible-annuities\",\"url\":\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/covid-19-and-the-demand-for-flexible-annuities\",\"name\":\"Covid-19 and the demand for flexible annuities - Economics Observatory\",\"isPartOf\":{\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/#website\"},\"datePublished\":\"2020-07-09T08:15:17+00:00\",\"dateModified\":\"2020-07-09T08:15:17+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/covid-19-and-the-demand-for-flexible-annuities#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/covid-19-and-the-demand-for-flexible-annuities\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/covid-19-and-the-demand-for-flexible-annuities#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.economicsobservatory.com\/test\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Covid-19 and the demand for flexible annuities\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/#website\",\"url\":\"https:\/\/www.economicsobservatory.com\/test\/\",\"name\":\"Economics Observatory\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.economicsobservatory.com\/test\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/#organization\",\"name\":\"Economics Observatory\",\"url\":\"https:\/\/www.economicsobservatory.com\/test\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.economicsobservatory.com\/wp-content\/uploads\/2021\/06\/Logo-for-Twitter.png\",\"contentUrl\":\"https:\/\/www.economicsobservatory.com\/wp-content\/uploads\/2021\/06\/Logo-for-Twitter.png\",\"width\":540,\"height\":392,\"caption\":\"Economics Observatory\"},\"image\":{\"@id\":\"https:\/\/www.economicsobservatory.com\/test\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/twitter.com\/econobservatory\",\"https:\/\/www.linkedin.com\/company\/economics-observatory\/\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Covid-19 and the demand for flexible annuities - Economics Observatory","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.economicsobservatory.com\/test\/ongoing-research\/covid-19-and-the-demand-for-flexible-annuities","og_locale":"en_GB","og_type":"article","og_title":"Covid-19 and the demand for flexible annuities - Economics Observatory","og_description":"The demand for voluntary lifetime annuities is low. 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