Fixed-term payouts in the Swedish pension system
Occupational pension plans in Sweden offer their plan members to withdraw their pensions as a life annuity or as a fixed-term payout. Fixed-term payouts last 5–20 years and therefore provide a higher monthly payment but cease after the specified payout period has ended. In this project, we study two factors that may affect the demand for life annuities: individuals’ life expectancy and their risk preferences. The study population comprises white-collar workers covered by the ITP plan.