Annuity market participation in the Netherlands

  • Wouter van Marle Wouter van Marle

I investigate the existence of a displacement effect between expected retirement income and the probability that a household participates in the annuity market. Using Dutch data from the DNB Household Survey, I find that expected retirement income crowds out annuity market participation for the lower part of the replacement rate distribution. Furthermore, the probability that a household participates in the annuity market is positively influenced by age, disposable income, and financial wealth, while it is negatively influenced by net worth. Moreover, I control for other theoretically motivated determinants of annuity market participation, which yield no significant results except for the relevance of minimum purchase requirements and illiquid wealth.

Netspar, Network for Studies on Pensions, Aging and Retirement, is a thinktank and knowledge network. Netspar is dedicated to promoting a wider understanding of the economic and social implications of pensions, aging and retirement in the Netherlands and Europe.


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