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Working paper
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Protecting Retirement Wealth: a survey of Australian products

Publisher
Finance Investments Australia
Description

We survey the long-term derivative instruments (warrants) offered by Australian institutions to elderly Australian investors. Our focus is on products other than plain-vanilla life annuities. There are currently four active products. They incorporate a strike price which is either constant or eligible for periodic upward resets. The guarantee terms vary in length from 5 years to the lifetime of a second person. The products typically have hybrid European-American features, as early exercise is typically permissible yet subject to penalties. Benefits are mostly lump-sum but can be income streams. Fees can include upfront, ongoing and exit ones.

Publication Details
DOI:
10.4225/50/583e33f774317
Access Rights Type:
open