Nijman, Theo; Werker, Bas J.M.; Peijnenburg, J.M.J. - Tilburg University, Center for Economic Research - 2010
retirement, full annuitization is not optimal. In the other case of low health cost risk early in retirement, individuals should … cost risk early in retirement may resolve the annuity puzzle. Moreover, we explain the observed pattern of annuitization as … a function of initial wealth at retirement. For personal financial planning purposes, we develop a simple rule of thumb …