• Journal of the Korean Data and Information Science Society
• /
• v.23 no.6
• /
• pp.1165-1172
• /
• 2012

The purpose of this paper is to investigate the reality of the occupational pension and suggest annuitization over a lifetime of the occupational pension for the purpose of securing income after retirement. A survey and the empirical analysis such as regression and crosstabulation analysis are employed. An research on a case study of an advanced countries is also conducted. The crosstabulation analysis shows that the post-retirement amenities of the self-employed person and the lower income bracket are serious. Individual retirement pension is suggested for the self-employed person and Riester Pension in Germany is recommended for the lower income bracket. The cases in Australia and the UK are useful for annuitization over a lifetime of the occupational pension.

• Korean Management Science Review
• /
• v.27 no.1
• /
• pp.45-60
• /
• 2010

This study evaluates life annuity plans based on two different types of measures : financial benefit and utility on consumption. The financial benefit is measured by Money's Worth (MW) ratio and return on annuity. For the measure of utility, an optimization problem is formulated with the objective of maximizing utility on consumption. To solve the optimization model, we use Dynamic Programming (DP) technique. The both types of measures are applied to cases of Korean pre-retirees at age 40 with different accumulation years of annuity (i.e. level of annuity asset at the age of retirement) and different timings of annuitization. Our results generally indicate that the utility based optimization model is superior to the financial measures in terms of providing a better evaluation of an annuity plan due to its capability to consider an individual's financial situation during his/her retirement period. Also, they suggest that the level of annuity asset is an important factor when an individual determines the optimal annuitization timing.