New Evidence on Annuity Choices in Chile: A Dynamic Programming Approach
The goal of this project is to analyze the empirical determinants of workers’ decision to annuitize or not at retirement, in Chile. An important decision that older people must consider pertains to how they should manage the decumulation process for their retirement assets. One option in the Chilean case is to purchase an annuity that provides a stream of income for the length of purchaser’s life, which requires transferring the funds to an insurance company.