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.

World Economic Forum Releases Research on the Future of Pension and Healthcare Financing

The World Economic Forum--in partnership with Mercer and the OECD--delivered its findings from a two year study on the future of the pension and healthcare financing systems in ageing countries. A Mercer article discussing the research can be found by clicking on the "full story" link at the bottom of this post. Longevity risk and the role of private annuity markets are discussed, as are the potential longevity risk-mitigating effects of longevity-indexed bonds. Source: Mercer Full Story

Glossary:

Key Phrases:

Key Phrases:

Glossary:

Key Phrases:

NAPFA Provides Consumers with Quality Control while Maintaining Flexibility for Financial Advisors

NAPFA is the National Association of Personal Financial Advisors.

NAPFA membership consists of financial advisors who provide comprehensive...

Companies:

Key Phrases Autotag:

Morningstar on Longevity Risk

Morningstar's Director of Personal Finance writes about the factors that are within an individual's control and therefore manageable through good planning. The economy and stock market movements are not on the list. Prudent risk management in retirement is on the list. The items that fall into the risk management category include: Longevity risk. Long-term care. Inflation . Regulatory risk and higher taxes. Longevity annuities are discussed in the context of longevity risk. Source: Morningstar...

Glossary:

Key Phrases:

Read more about Morningstar on Longevity Risk
Log in to post comments

Key Phrases:

Glossary:

Key Phrases:

Retirement Vulnerability Index Highlights Need for Sources of Guaranteed Income

A not for profit coalition of organizations known as Americans for Secure Retirement has published an interesting summary of an Ernst and Young study that focuses on the impact of longevity risk on middle-...

Glossary:

Key Phrases Autotag:

Read more about Retirement Vulnerability Index Highlights Need for Sources of Guaranteed Income
tom's blog
2 comments
Log in to post comments

Key Phrases:

Glossary:

Key Phrases Autotag:

Bulk Purchase Annuity Market Booming as Pension Deficits Swell

The UK pension market is in tough shape post financial crisis. According to a Bloomberg article, "about 87 percent of the U.K.’s 7,400 final salary pension plans are in deficit following the financial crisis." This crisis offers an unprecendented opportunity for companies that insure the pension liabilities of private corporations through bulk purchase annuities. “The bulk-purchase annuity market is going to continue to be a good market because companies want to get their pension...

Glossary:

Bulk Purchase Annuity

Volatility

Key Phrases: