nonredistributive plan that accounts for differences in mortality, US Social Security reduces regressivity from longevity differences …

mortality risk. In addition to stocks and bonds, households also have access to incomplete annuity markets offering a hedge … against mortality risk. We show that a considerable fraction of wealth should be annuitized to skim the return enhancing … mortality credit. The remaining liquid wealth (stocks and bonds) is used to hedge labor income risk during work life, to earn …

retirement. Positive annuity loads and age-varying bequest motives together explain why a substantial demand for life insurance …