## Regulation of Withdrawals in Individual Account Systems

_IMF Working Papers, November 1, 1999_

## Source details

**Canonical URL:** [Regulation of Withdrawals in Individual Account Systems](https://www.imf.org/en/publications/wp/issues/2016/12/30/regulation-of-withdrawals-in-individual-account-systems-3318)

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## Bibliographic details
- Authors: Jan Walliser
- Published: November 1, 1999
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451857139.001

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### Summary and key findings
- Funded mandatory pension systems based on individual accounts are spreading around the world.
- As these systems mature, regulation of the withdrawal of retirement savings will become increasingly important.
- Government regulation of withdrawals should mandate the purchase of inflation-indexed life annuities exceeding income available from government welfare programs for the retiree and potential survivors.
- Proper functioning of insurance markets does not require annuitizing the entire account balance.
- Flexibility for the choice of withdrawals could be permitted for any remaining funds, helping to tailor income streams to individual needs and living arrangements.

### Policy recommendations
- Mandate purchase of inflation-indexed life annuities that provide income above government welfare program levels for retirees and potential survivors.
- Allow partial annuitization: require sufficient annuitization to secure basic retirement income while permitting discretionary withdrawal options for residual account balances.
- Design withdrawal regulations to balance insurance market functioning with individual tailoring of income streams to household needs and living arrangements.

### Scope and thematic coverage
- Subjects: Aging, Financial institutions, Income, Insurance, Labor, National accounts, Pensions, Population and demographics, Retirement.
- Keywords: Aging, annuities market, annuity, annuity company, annuity insurance markets well, Eastern Europe, family annuity contract, Income, individual accounts, Insurance, investment portfolio, pension reform, Pensions, refund annuity, Retirement, WP.

*Regulation of Withdrawals in Individual Account Systems — Jan Walliser, November 1, 1999 (IMF Working Papers 1999/153).*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/regulation-of-withdrawals-in-individual-account-systems-3318_