| Summary: | 碩士 === 逢甲大學 === 風險管理與保險研究所 === 97 === The retirement benefit (old-age benefit) of labor insurance, provided by Bureau of Labor Insurance, has been changed from one-time payment to annuity payments since the beginning of 2009. Besides, the new labor insurance gives the insured a timing option to start receiving the annuity payments. The insured can start at age of 55, or postpone it until at age of 65. If the starting age comes before 60, then the annuity payment will be 4% discount for each early year. If the starting age comes after 60, then the payment will be 4% premium for each late year. Because the annuity payments cease when the insured die, there is trade-off for the timing decision. By choosing to receive the payment early, the insured would have more numbers of payments, but less amounts paid each time. By starting at late age, each payment is higher but with less numbers of payments. Thus, how to make the best of the timing option, or when annuitizing the retirement benefit, is an important problem for the insured going to retire from jobs.
This thesis analyzes the timing problem by using net present value criterion. Three cases are analyzed according to the labor insurance status of the insured between age 55 to age 65. In the first case, there is no insurance in between. For the second case, the insured work as employees and continue to insure until retiring and getting annuity payments. Self-employees are the third case. The difference between the second and the third is the rate of insurance premium. The premium for the self-employees is two times more. By calculating the net present value of annuity received at different ages under some numerical scenario, the numerical results show late annuitizations generally have high net present value. The exception happens in the first case when interest rate reaches 3% and more. Basically, when the interest rate is high, the benefits of late annuitization become less. Furthermore, female do not have higher net present value of the annuity because labor insurance makes up the difference of one-time payment and accumulated annuity payments.
|
|---|
