Optimal Annuitization with Stochastic Mortality Probabilities
---- Acknowledgments ----
This paper is based, in part, on Sven H. Sinclair and Kent Smetters, Health Shocks and the Demand for Annuities, Technical Paper 2004-09 (Congressional Budget Office, July 2004). The authors have benefited from discussions with Zvi Bodie, Michael Boskin, Jeffrey Brown, Daniel Gottlieb, Caroline Hoxby, Laurence Kotlikoff, Robert Merton, Rick Miller, Joshua Rauh, Dan Sacks, Tom Sargent, Florian Scheuer, Joseph Tomlinson, and seminar participants at the 2012 Brigham Young University Computational Public Economics Conference, the Congressional Budget Office (CBO), Boston University, and Stanford University. This research was supported by the Social Security Administration (SSA) through grant #5 RRC08098400-04-00 to the NBER as part of the SSA Retirement Research Consortium. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research, CBO, SSA, or any other agency of the federal government.