paper reviews theory and practice relating to longevity risk and insurance, amid a rapidly changing demographic and policy …

cost risk early in retirement may resolve the annuity puzzle. Moreover, we explain the observed pattern of annuitization as … for annuity demand, based on expected health cost risk early in retirement, wealth at retirement, and minimum consumption …We analyze the effect of health cost risk on optimal annuity demand and consumption/savings decisions. Many retirees …

We examine incomplete annuity menus and background risk as possible drivers of divergence from full annuitization … after retirement. This holds irrespective of whether real or only nominal annuities are available. Whenever liquidity is … desired, individuals save sizeable amounts out of their annuity income to smooth consumption shocks. Similarly, adding …