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Taxes, Retirement Transfers, and Annuities *
Author(s) -
BATEMAN HAZEL,
KINGSTON GEOFFREY,
PIGGOTT JOHN
Publication year - 1993
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1993.tb02107.x
Subject(s) - annuity , pension , life annuity , social security , incentive , economics , lump sum , private pension , public economics , actuarial science , business , labour economics , finance , payment , microeconomics , market economy
In most countries, retirement benefits from pension saving must be taken as an annuity. By contrast, Australia allows benefits to be taken as a lump sum, and instead has recently introduced various tax incentives to encourage annuity purchase. This paper investigates the effectiveness of these tax concessions, and concludes that they do little to achieve this objective This is because they are nullified by the provisions of the broader tax and social security framework within which Australian private pension policy is set