Poster #103 - The Effect of Savings Annuitization on Elderly Outcomes

• In Event: Friday Poster Reception

Abstract

In this project, I estimate the causal effect of annuitizing pension savings on individuals' subsequent outcomes. Specifically, I examine whether annuitization, compared to cashing out pension savings, influences entrepreneurship, economic conditions, and mortality among retirees.  To identify this effect, I exploit two sources of variation: (i) quasi-random variation in pension payout options within the Colombian private pension system, where eligibility for a lump-sum withdrawal or annuitization depends on whether an worker´s pension savings exceed a threshold largely determined by the annual growth of the national minimum wage set by the central government, and (ii) retirement patterns around statutory retirement ages.

Author

• Tatiana Hiller, University of California, Davis
  Presenting Author