Full List of Annuity Types
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Longevity Annuity
A longevity annuity is a type of income annuity with a deeply deferred payout period that commences well into the future. For example, a 65 year old person might purchase a longevity annuity with a payout period that begins at age 85. Longevity annuities are relatively new, but they represent a very powerful and efficient form of insurance. Longevity Annuities are often referred to as longevity insurance.
Swiss Re First in Providing Longevity Insurance to a Public Pension Fund
The Reinsurer Swiss Re has provided the first public-private longevity transaction with a U.K.-based public sector pension fund . Swiss Re is essentially providing longevity insurance to 11,000 of the current pensioners under the Royal County of Berkshire Pension Fund. Swiss Re will assume the "floating" annuity payments and longevity risk for the 11,000 pensioners in exchange for an ongoing fixed premium. The Royal County of Berkshire retains control over the plan assets and the plan...
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Longevity Risk and Portfolio Protection Without a Variable Annuity
Two of the most daunting risks faced by the majority of retirees are:
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Retirement Planning with TIPS and Longevity Annuities
Gowri Shankar of the University of Washington has published an article on the use of Treasury Inflation -Protected Securities ( TIPS ) and longevity annuities. Shankar suggests that a combination of TIPS and longevity insurance provides an optimal strategy when the objective is guaranteed retirement income . Shankar demonstrates that the combination affords the ability to sustain relatively high withdrawal rates while minimizing the probability of financial ruin in retirement. The strategy also...
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Calculating the Value of a Longevity Annuity
A longevity...
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