April 2022

Australia. Two pathways for super funds to address longevity risk
11Apr

Australia. Two pathways for super funds to address longevity risk

Addressing longevity risk in the Retirement Income Covenant (RIC) is a tougher nut to crack for superannuation funds than its mandate for funds to mitigate investment and inflation risk to retirement savings. Speaking to Money Management, Challenger’s general manager, institutional partnerships, Simon Brinsmead, said this was because it was the only risk that funds needed to balance that existed outside of the accumulation phase. “Why this is significant is because you've got around about 700 people retiring every day now, so...

April 11, 2022
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Why Society Needs To Change How We Think About Aging
01Apr

Why Society Needs To Change How We Think About Aging

With the Age Discrimination in Employment Act coming into force back in 1967, the notion of age discrimination has a long history. Unfortunately, it’s an issue that we still grapple with today, and whereas it’s easy to assume it’s only a problem for those in and around retirement age, a survey from Senior Living suggests it can kick in as early as our 40s. The research, which saw over 1,100 Americans over 40 years of age quizzed about their workplace...

April 1, 2022
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March 2022

Looking into Longevity: Q&A with Professor David Blake
31Mar

Looking into Longevity: Q&A with Professor David Blake

By David P. Blake & Howard Kearns Defined benefit pension schemes are increasingly focusing on the impact of longevity risk on their liabilities. Howard Kearns, longevity director at Insight, speaks to Professor David Blake, professor in the Faculty of Finance at Bayes Business School and Director of the Pensions Institute, on the impact of the pandemic on longevity, the consequences for pension schemes, and the future of the longevity hedging market. Sourse: SSRN 273 views

March 31, 2022
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People Are Now Living More Years in Good Health
18Mar

People Are Now Living More Years in Good Health

Older adults may not only be living longer, but better as well, according to a new U.K. study. Researchers found that since the 1990s, British adults age 65 and up have been enjoying more years living independently, free of disability. That's despite the fact that many chronic health conditions have become more common. In fact, disability-free years rose not only among healthy seniors, but those living with conditions like heart disease, diabetes, arthritis and vision and hearing problems. Experts called the findings...

March 18, 2022
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Partial De-Annuitization of Public Pensions V.S. Retirement Age Differentiation. Which is Best to Account for Longevity Differences?
17Mar

Partial De-Annuitization of Public Pensions V.S. Retirement Age Differentiation. Which is Best to Account for Longevity Differences?

By Vincent Vandenberghe Extensive research by demographers and economists has shown that longevity differs across socioeconomic status (SES), with low-educated or low-income people living, on average, shorter lives than their better-endowed and wealthier peers. Therefore, a pension system with a unique retirement age is a priori problematic. The usual policy recommendation to address this problem is to differentiate the retirement age by SES. This paper explores the relative merits of partial de-annuitization of public pensions as a way of addressing...

March 17, 2022
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February 2022
28Feb

Owning a Dog Could be Key to “Succesful Aging”- Study

Every dog owner knows and sometimes bemoans the daily ritual of taking your pup out for a walk. But as it turns out, those strolls around the block with Fido may be the key to a healthy life, especially as we get older. A study published Wednesday in the journal PLOS ONE examines the relationship between pet ownership, disability, and death among seniors in Japan, providing new insights into the connection between dog ownership and successful aging. The researchers discovered dog...

February 28, 2022
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17Feb

UK. Pension chiefs encourage company stakeholder engagement

A group of pension executives has challenged companies to engage with their stakeholders and intensify their efforts to reach net zero emissions. The statement came in a letter to the Financial Times, signed by leaders from across the defined benefit and defined contribution spaces, Local Government Pension Scheme funds and private plans who are collectively responsible for more than £675bn in assets. Brunel Pension Partnership’s chief responsible investment officer Faith Ward, Nest’s chief executive Helen Dean and BT Pension Scheme Management’s...

February 17, 2022
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09Feb

UK. Climate change a ‘fundamental risk’ to scheme longevity

Climate change is severely impacting on the covenants of a range of employers sponsoring UK defined benefit (DB) schemes, the Employer Covenant Practitioners Association (ECPA) says. In a paper published today (8 February), the ECPA said climate change is "progressively impacting" the covenant of many sponsors, from impacting upon cashflows to representing a "fundamental risk" to scheme longevity. It argues that DB schemes should consider the impacts of climate change through sectoral analysis, including regulation and technological evolution, to best consider...

February 9, 2022
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December 2021
16Dec

Aegon strikes deal with RGA to reinsure longevity risk in pensions

Aegon, the Dutch insurer, said on Wednesday it has struck a deal with Reinsurance Group of America (RGA) to hedge the risk that people in its Dutch pensions business will live longer than expected. The move "improves the risk profile of this business and is another step to generate stable, regular, and reliable cash flows," said CEO Lard Friese in a statement. Aegon said under the deal "initially" it would sacrifice 40 million euros ($45 million) in operating capital generation at...

December 16, 2021
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November 2021
26Nov

Longevity, the uncertainty and managing the risks

A key to any plan is knowing how long the plan is needed. For retirement, the plan is often based on life expectancy, which has been steadily increasing over the past 100 years. While the concept of life expectancy appears simple enough, some common misunderstandings can create problems for financial advisers and their clients. Today’s retirees are now typically living into their late 80s; 10 years longer than they did in the 1990s. In 2020, the most common age of...

November 26, 2021
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