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https://doi.org/10.21256/zhaw-26966| Publication type: | Article in scientific journal |
| Type of review: | Peer review (publication) |
| Title: | How taxes impact the choice between an annuity and the lump sum at retirement |
| Authors: | Bütler, Monika Ramsden, Alma |
| et. al: | No |
| DOI: | 10.1017/S1474747222000178 10.21256/zhaw-26966 |
| Published in: | Journal of Pension Economics & Finance |
| Volume(Issue): | 23 |
| Issue: | 1 |
| Page(s): | 1 |
| Pages to: | 29 |
| Issue Date: | 2022 |
| Publisher / Ed. Institution: | Cambridge University Press |
| ISSN: | 1474-7472 1475-3022 |
| Language: | English |
| Subjects: | Annuity puzzle; Occupational pension; Taxation |
| Subject (DDC): | 330: Economics |
| Abstract: | We analyze how taxes affect the choice between a life-long annuity and a one-off lump sum payment, the so-called annuitization decision. Using administrative data from a large Swiss pension fund, we impute taxes for the lump sum and the life-long annuity option. We show that taxes can explain a significant part of the variation in annuity rates. Exploiting kinks in the tax schedule of the one-off lump sum, we further find evidence for tax optimization strategies. Our findings suggest that individuals react strongly to tax incentives when making retirement choices. |
| Further description: | Erworben im Rahmen der Schweizer Nationallizenzen (http://www.nationallizenzen.ch) |
| URI: | https://digitalcollection.zhaw.ch/handle/11475/26966 |
| Fulltext version: | Published version |
| License (according to publishing contract): | CC BY 4.0: Attribution 4.0 International |
| Departement: | School of Management and Law |
| Organisational Unit: | Institute of Public Management (IVM) |
| Appears in collections: | Publikationen School of Management and Law |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 2022_Buetler-Ramsden_How-taxes-impact-the-choice-between-annuity-and-lump-sum-at-retirement.pdf | 1.02 MB | Adobe PDF |  View/Open |
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Bütler, M., & Ramsden, A. (2022). How taxes impact the choice between an annuity and the lump sum at retirement. Journal of Pension Economics & Finance, 23(1), 1–29. https://doi.org/10.1017/S1474747222000178
Bütler, M. and Ramsden, A. (2022) ‘How taxes impact the choice between an annuity and the lump sum at retirement’, Journal of Pension Economics & Finance, 23(1), pp. 1–29. Available at: https://doi.org/10.1017/S1474747222000178.
M. Bütler and A. Ramsden, “How taxes impact the choice between an annuity and the lump sum at retirement,” Journal of Pension Economics & Finance, vol. 23, no. 1, pp. 1–29, 2022, doi: 10.1017/S1474747222000178.
BÜTLER, Monika und Alma RAMSDEN, 2022. How taxes impact the choice between an annuity and the lump sum at retirement. Journal of Pension Economics & Finance. 2022. Bd. 23, Nr. 1, S. 1–29. DOI 10.1017/S1474747222000178
Bütler, Monika, and Alma Ramsden. 2022. “How Taxes Impact the Choice between an Annuity and the Lump Sum at Retirement.” Journal of Pension Economics & Finance 23 (1): 1–29. https://doi.org/10.1017/S1474747222000178.
Bütler, Monika, and Alma Ramsden. “How Taxes Impact the Choice between an Annuity and the Lump Sum at Retirement.” Journal of Pension Economics & Finance, vol. 23, no. 1, 2022, pp. 1–29, https://doi.org/10.1017/S1474747222000178.
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