Policy-induced welfare losses from limited decumulation optionsŠterpin, Dino (Avtor) Laporšek, Suzana (Avtor) Vovk, Boštjan (Avtor) decumulation strategiesdefined contribution pensionsloss-aversion utilitymoney’s-worth ratioSloveniautility-equivalent wealthThis study examines restricted decumulation options for retirees with Defined Contribution (DC) in Slovenia and shows how these constraints create an implicit tax on accumulated assets. Using the Money’s Worth framework, we find that Slovenian annuities offer lower value than comparable products in advanced markets. We develop a utility-based model with loss aversion to quantify welfare losses across eight retiree types, differing in loss aversion, bequest motive, replacement rate, and time preference. Seven out of eight retiree types achieve higher utility under currently unavailable strategies. We introduce the Implicit Tax on DC Assets to capture the opportunity cost of restricted product availability.20262026-04-20 12:02:55Neznano22974sl