Trading Death: The Implications of Annuity Replication for the Annuity Puzzle, Arbitrage, Speculation and Portfolios, International Review of Financial Analysis.

By Professor Charles Sutcliffe   All defined benefit pensions, as well as the state pension, effectively provide pensioners with an annuity – a regular stream of payments that continues until death. In addition, members of defined contribution schemes have to buy an annuity with their pension pot. (In April 2015 this obligation for defined contribution…