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This paper deals with Alternative Risk Transfer (ART) through the securitization of longevity and mortality risks in pension plans and commercial life insurance. Various types of such mortality-linked securities are described (e.g., CATM bonds, longevity bonds, mortality forwards and futures,...
Persistent link: https://www.econbiz.de/10008876450
Uncertainty about length of life, longevity risk, is a growing financial problem for pension funds and annuity providers. They would like to transfer longevity risk away to institutions better placed to deal with it. Unfortunately, there is a lack of financial instruments to hedge against this...
Persistent link: https://www.econbiz.de/10004962914
Annuities are specifically designed to cover the risk that an individual outlives their own resources by transferring such risk to an insurance undertaking. Despite an increasing need for annuity products (due to increasing longevity, decreasing state pensions, a rise in Defined Contribution...
Persistent link: https://www.econbiz.de/10005011984
Uncertainty about length of life, longevity risk, is a growing financial problem for pension funds and annuity providers. They would like to transfer longevity risk away to institutions better placed to deal with it. Unfortunately, there is a lack of financial instruments to hedge against this...
Persistent link: https://www.econbiz.de/10012721441
This paper examines how uncertainty regarding future mortality and life expectancy outcomes, i.e. longevity risk, affects employer-provided defined benefit (DB) private pension plans liabilities. The paper argues that to assess uncertainty and associated risks adequately, a stochastic approach...
Persistent link: https://www.econbiz.de/10012730956
household retirement choices. As the population ages, fiscal challenges created when many individuals retire from working and … paying tax to drawing government funded benefits and services present some stark policy choices. Understanding how retirement …
Persistent link: https://www.econbiz.de/10012899320
order to better monitor retirement income adequacy and the role of private provision in retirement income. Key indicators of … private pensions have across countries‘ workforce, contributions made into pension funds and personal retirement accounts, and … discussions on the role of private pensions on retirement benefit adequacy. It covers all EU-27 Member States and selected non …
Persistent link: https://www.econbiz.de/10011276667
By all measures the private pension system in Canada is in difficulty. One estimate suggests that at the end of 2005 there were significant funding shortfalls in about three quarters of the traditional defined benefit pension plans that fall under federal jurisdiction in Canada. In order to...
Persistent link: https://www.econbiz.de/10005404423
-funded pension insurances. A substantial share of the population, however, still has no or only insufficient private retirement …
Persistent link: https://www.econbiz.de/10012144657
retirement and the associated risks in running out of funds in the retirement savings pool. The first is a bootstrap simulation … thirty year retirement horizon for some commonly recommended periodic withdrawal rates …
Persistent link: https://www.econbiz.de/10013064924