Over the last half-century, around the world, many nations have seen plummeting fertility rates and mounting life expectancies. These two factors are the engine behind unprecedented global aging. In this paper, we explore how the demographic transition may influence financial markets and, in...

We study the impact of housing wealth and individual preferences on demand for annuities and long-term care insurance (LTCI). We build a multi-state lifecycle model that includes longevity risk and health shocks. The preference is represented by a recursive utility function that separates risk...

Mortality risk sharing pools such as pooled annuity funds and tontines provide an attractive and effective solution for managing longevity risk. They have been widely studied in the literature. However, such arrangements are not optimal for individuals in need of long-term care (LTC) insurance....