Annuity Markets

The shift from defined benefit to defined contribution pension plans, in both the public and private sectors and around the world, has drawn new attention to the long-standing problem of insuring against longevity risk in retirement. This volume provides a superb introduction to the operation of current annuity markets and the economic analysis of these markets.'James Poterba, Mitsui Professor of Economics, MIT and President, National Bureau of Economic ResearchConverting savings into sustainable spending is fast becoming the major challenge for the baby boomers. This book provides a great source of information on annuities from both an actuarial science and behavioural economics perspective and on how we can help meet this need.‘Tom Boardman, Director of Retirement Strategy, Prudential`As the baby boomers begin to retire from 2010, an understanding of the role and importance of annuities has never been more needed. This is because they are the only financial instrument ever devised that can hedge longevity risk. More than half the world’s life annuities are sold in the UK, and two of the UK’s leading experts have written this timely book on annuities. It will become a standard reference.‘David Blake, Professor of Pension Economics at Cass Business School

Dr Edmund Cannon is a Senior Lecturer in Economics at the University of Bristol. His research includes work on pension economics the effect of demographic change on the macroeconomy endogenous growth theory and the rôle of financial markets and transport in economic development. He has published in leading economics and economic history journals. He teaches macroeconomics and econometrics, is Deputy Director of the Economics Network of the Higher EducationAcademy and has taught at the University of Oxford and the University of Verona. He has acted as a consultant to the UK water industry and advised the Department of Work and Pensions. Professor Ian Tonks isDirector of Xfi Centre for Finance and Investment at the University of Exeter. During the academic year 2006⁄07 he is Senior Houblon-Norman Fellow at the Bank of England. His research focuses on pension economics fund manager performance market microstructure and the organisation of stock exchanges directors’ trading and the new issue market. He has published in leading finance and economics journals, and teaches across all areas of financial economics including asset pricing, corporatefinance, market efficiency and performance measurement. He is a consultant to the Financial Markets Group, and the Centre for Market and Public Organisation. He has acted as a consultant to a number ofcommercial and regulatory organisations including the London Stock Exchange, the Competition Commission, and the Financial Services Authority, and has advised the Department of Work and Pensions, and the House of Commons Select Committee on issues in pensions.