Abstract
Mortality improvement in many countries nowadays has drawn the policymakers’ attention towards providing a financially stable retirement scheme for the retirees. In some countries like Chile and Switzerland, annuity is common as a successful product with a good retirement benefit. Private annuities were also introduced in the Malaysian market back in year 2000. However, this product has been suspended by the government a year after, due to objection by the Malaysian Trade Union Congress (MTUC). Reasons were that it is a for-profit scheme only for insurance companies and it provides lack of protection to contributors’ retirement savings. Regardless of this controversial issue, our study aims to provide several actuarial analysis of the Malaysia’s 2000 private annuities by computing the Money’s Worth Ratio (MWR) and the Annuity Equivalent Wealth (AEW) of the product. Our analysis will be used to evaluate whether this annuity is worth buying for consumer using an actuarially fair price and also the market price.
| Original language | English |
|---|---|
| Pages (from-to) | 6-7 |
| Number of pages | 2 |
| Journal | Expo 2012 Higher Degree Research : book of abstracts |
| Publication status | Published - 2012 |
| Event | Higher Degree Research Expo (8th : 2012) - Sydney Duration: 12 Nov 2012 → 13 Nov 2012 |
Keywords
- Malaysia's private annuities
- Money's Worth Ratio
- Annuity Equivalent Wealth