, we measure the welfare improvements from including LIAs in the menu of plan payout choices, accounting for mortality …. Optimal annuitization boosts welfare by 5-20% of average retirement plan accruals at age 66 (assuming average mortality rates …

-dependent mortality risk. This is because while a more progressive benefit-earnings rule provides increased insurance for households with … relatively unfavorable earnings histories, and therefore lower savings and survivorship, their relatively high mortality risk … nearly identical optimal benefit-earnings rules both with and without differential mortality. …

more important issue that we address. In actuarial practice, the different mortality levels of the several risk classes are … obtained by applying adjustment coefficients to population mortality rates. Such a choice is not supported by a rigorous model …. On the other hand, the heterogeneity of a population with respect to mortality can formally be described with a frailty …