Horneff, Wolfram J.; Maurer, Raimond H.; Stamos, Michael Z. - 2007
how much he consumes and how much he invests in stocks, bonds, and annuities. Pricing the annuities we account for … asymmetric mortality beliefs and administration expenses. We show that the retiree does not purchase annuities only once but … rather several times during retirement (gradual annuitization). We analyze the case in which the retiree is restricted to buy …