There is a need in pension systems to significantly improve the level and stability of pension payments as pensioners age. Solutions to address increased longevity and longevity risk should be not limited to increasing the take-up rate of annuities – explicit guarantees are costly in a...

At a 2019 retirement security conference in Brazil, one of the authors proposed that Brazil introduce a low-cost, low-risk, simple and liquid bond innovation: “SeLFIES”— Standard of Living indexed, Forward-starting, Income-only Securities. SeLFIES would serve as the relative safe asset for...

In this paper we develop a theoretical basis for integrating retirement and permanent disability using a generic NDC framework. The methodology used relies on a multistate overlapping generations model that includes the so-called survivor dividend. Currently this feature can only be found in the...

The present-day retirees may not be as well off as they expect to be during their retired life. Given the current state of the world – higher life expectancy, close to zero real interest rate and the economic turmoil caused by the Covid-19 pandemic, a superannuation fund as large as $545,000...

In this paper we use the actual rules and formulas of an occupational pension fund, the state pension fund and the tax system in the Netherlands to calculate net replacement rates at each age from 60 to 70 in full and partial retirement scenarios. We then vary the parameters of the pension...

This paper proposes an innovative retirement product with a focus on longevity risk sharing, a contract we refer to as tail index-linked annuity (TILA). Specifically, the proposed TILA pays out variable annual payments, which will be equal to a regular nominal amount when a reference survival...

Pension funds are increasingly relying on swaps to hedge the long-term nature of their liabilities. While the use of swaps reduces pension funds' exposure to interest rate risk, it exposes pension funds to liquidity risk because of potential margin calls. We study these effects using unique data...

We discuss public pension systems in a multi-period overlapping generations model with gerontologically founded human aging and a special focus on occupation-specific morbidity and mortality. We examine how distinct replacement rates for white-collar and blue-collar workers and early retirement...