Annuities are specifically designed to cover the risk that an individual outlives their own resources by
transferring such risk to an insurance undertaking. Despite an increasing need for annuity products (due to
increasing longevity, decreasing state pensions, a rise in Defined Contribution pension plans etc.), these
markets remains under-developed in many OECD countries. This paper attempts to address why this is the
case and what policy options exist for encouraging annuity markets to develop.
