Longevity

The UK is leading the world when it comes to hedging the longevity risk contained in many defined benefit pension plans. In a $3 billion deal, Rothesay Life will be assuming the longevity-related liabilities of 55 percent of the plan participants of the RSA Insurance Group pension plan . Goldman Sachs is the parent company of Rothesay Life. Liability swaps such as this are poised to gain traction in the UK, but are essentially non-existent in the United States since certain legal aspects of the...

Brett Arends writes a personal finance column for the Wall Street Journal. He is one of the more interesting and popular personal finance writers in the industry. Although a subscription is required to read the Wall Street Journal, Arends' column (among other Journal features) is highly recommended. For the past two weeks, Arends has written columns that focus on annuities. The columns can be accessed by clicking here and here . Both articles are highly recommended. Topics addressed include:...

Writing in the Huffington Post, CBS MoneyWatch Editor in Chief Eric Schurenberg says he thinks it is time to consider major changes for 401k plans. His criticisms include: 401k plans randomly create winners and losers. 401k plans leave people poor. 401k plans expose people to longevity risk . Comments on longevity risk include: The shame of this is, longevity risk can be insured away by averaging out the risk over an entire population. Every annuity does this. Why not the national retirement...

Thinking of paying for one of the comprehensive and often very expensive executive health exams that involve dozens or even hundreds of different screens and tests? If so, take a look at the article from MSN Health that is referenced below. The author recommends five of the highest value tests. According to one physician, a V02 max test that involves the treadmill or stationary bike is one of the best indicators of overall health and potential longevity: "Blood pressure, cholesterol—those...