English (United Kingdom)

https://curated-unify.zendy.io/wp-json/zendy-region/v1/featured_content/oa?rat=en

https://curated-unify.zendy.io/wp-json/zendy-region/v1/highlighted_journal/

Global: Zendy Plus annual

Presents the access of premium content as premium feature

Premium Content

Presents the keyphrase highlighting as premium feature

Keyphrase Highlighting

Presents the summarisation as premium feature

Summarisation

Insights

Presents the pdf analysis as premium feature

PDF Analysis

Presents the zaia usage as premium feature

ZAIA

Global: Zendy Tools annual

Global: Zendy Free Plan

Global: Zendy Tools monthly

Global: Zendy Plus monthly

We study optimal retirement portfolio choice and welfare when individuals can choose between stocks, bonds, and either a life-contingent (life) annuity or a health-contingent (life care) annuity. We develop a life-cycle model of annuitization, consumption, and investment decisions for a single retired individual who faces stochastic capital market returns, uncertain health status, differential mortality risks, and uncertain out-of-pocket health care expenditure, including at end of life. Using the calibrated model, we find that life care annuities are more attractive than life annuities and would enhance annuity demand by 12 percentage points. Life care annuities allow individuals to reduce precautionary savings and consume more throughout retirement, with individuals willing to pay a loading of up to 21% for access to the product.

Optimal Portfolio Choice with Health-Contingent Income Products: The Value of Life Care Annuities