Albrecht, Peter; Göbel, Thorsten - Sonderforschungsbereich 504 "Rationalitätskonzepte, …; … - 2000
The present paper considers a retiree of a certain age (60 years, 70 years) facing the following alternative investment opportunities. One possibility is to buy a single premium immediate (constant) annuity-contract. This contract guarantees a life long pension payment of a certain amount,...