Longevity Risk

The risk of outliving one's assets. In other words, the risk of running out of money during retirement. In most countries, average life expectancy has increased dramatically over the past several decades. Longer lifespans are somewhat of a mixed blessing because of the financial burden associated with more years of retirement. Individuals, insurance companies and governments are exposed to the financial pressures created by the need to finance increasing longevity. Longevity risk is a key challenge for many societies around the world.

An Interview with Peter Nakada of RMS

Peter Nakada is a Managing Director, capital markets at Risk Management Solutions (RMS).  We had a chance to speak to Peter about longevity risk, structural modeling and the RMS LifeRisks model at the recent RMS annual conference.

AD: Can you explain why using an actuarial approach or “pure math” will not work when trying to understand the future of longevity. Specifically, why are actuarial approaches unable to capture “regime shifts” if those regime shifts are present in the...

S. Jay Olshansky on Why the Message is All About Extending Health

S. Jay Olshansky is a Professor in the School of Public Health at the University of Illinois at Chicago and Research Associate at the Center on Aging at the University of Chicago and at the London School of Hygiene and Tropical Medicine. Much of Dr. Olshanky's research has focused on the upper limits to human longevity and the health and public policy implications associated with aging.  We had an opportunity to connect with Jay at the recent SOA Living to 100 Symposium.

AD: As an expert...


Moshe Milevsky Discusses Tontines for the 21st Century

Moshe Milevsky is an Associate Professor in Finance at the Schulich School of Business at York University, and he is one of the world’s leading authorities on retirement income.  Professor Milevsky recently published and presented an...

An Interview with Gordon Woo of RMS

AD: Your book Calculating Catastrophe discusses the dynamic nature of catastrophe risks, and you have written elsewhere about how longevity risk is also a dynamic risk.  What is the key to dynamic risk analysis--imagination and informed judgment based on multiple disciplines and scenarios?  

Gordon Woo: All the risk analysis at RMS is based first and foremost on identifying the causal structure of the underlying phenomenon.  Generating ensembles of alternative...

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Noteworthy Reads - October 17, 2013

- Buffett and Berkshire adding equity exposure to defined benefit...

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