October 2021
14Oct

Ireland. Pensions adequacy, planning for better life expectancy

By 2070, males born in Ireland will be expected to live 22 years longer than they would have in 1951, while females would be expected to live 23 years longer. Earlier this month, the Department of Finance released a report which suggested that the best way to deal with the pensions timebomb was to link the state pension age to life expectancy. The report was not greeted with enthusiasm. Political pressure after the last election forced a deferral of the planned...

October 14, 2021
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September 2021
30Sep

Progressive Pensions as an Incentive for Labor Force Participation

By Fabian Kindermann, Veronika Pueschel In this paper, we challenge the conventional idea that an increase in the progressivity of old-age pensions unanimously distorts the labor supply decision of households. So far, the literature has argued that higher pension progressivity leads to more redistribution and insurance provision on the one hand, but increases implicit taxes and therefore distorts labor supply choices on the other. In contrast, we show that a well-designed reform of the pension system has the potential to...

September 30, 2021
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August 2021
25Aug

Why The Decline In Life Expectancy Shouldn’t Affect Your Retirement Plans

By Bob Carlson Average life expectancy in the U.S. declined by 1.5 years in 2020, according to a recent report from the Centers for Disease Control and Prevention. That is believed to be the largest one-year decline in life expectancy since at least World War II. Life expectancy was 77.3 years in 2020, about the same level as in 2003. Life expectancy should be a major factor in retirement planning. I often recommend that one of the first steps in developing a...

August 25, 2021
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06Aug

Death and Taxes: Why Longer Lives Cost Money

By Christopher Snowdon The British population is getting older. In 1948, life expectancy was 68. Thanks to healthier lifestyles and medical advances, it is now 81 and is expected to rise to 87 by the end of the next decade. The rapid growth of the elderly population will put a strain on healthcare, social care and welfare provision. The Office for Budget Responsibility predicts that health spending in the UK will rise from 6.2 per cent of GDP in 2019/20 to...

August 6, 2021
Aging, Articles, Pension design, ,
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July 2021
23Jul

Alternative Risk Transfer: Integrated Risk Management through Insurance, Reinsurance, and the Capital Markets

By Erik Banks A practical approach to ART-an alternative method by which companies take on various types of risk This comprehensive book shows readers what ART is, how it can be used to mitigate risk, and how certain instruments/structures associated with ART should be implemented. Through numerous examples and case studies, readers will learn what actually works and what doesn't when using this technique. Erik Banks (CT) joined XL Capital's weather/energy risk management subsidiary, Element Re, as a Partner and Chief Risk...

July 23, 2021
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May 2021
20May

Prospective Longevity

By Warren C. Sanderson, Sergei Scherbov From two leading experts, a revolutionary new way to think about and measure aging. Aging is a complex phenomenon. We usually think of chronological age as a benchmark, but it is actually a backward way of defining lifespan. It tells us how long we’ve lived so far, but what about the rest of our lives? In this pathbreaking book, Warren C. Sanderson and Sergei Scherbov provide a new way to measure individual and population aging. Instead...

May 20, 2021
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07May

Leveraging longevity and tackling intergenerational inequality in Japan

Japan has the world’s most aged population. As the number of elderly people increases, the benefits the government funds, such as pensions, medical care and nursing care, have been swelling. Since these benefits are mainly financed by taxes and social insurance premiums paid by the working-age population, the burden will be heavier on future generations as Japan continues to age. Leveraging longevity and tackling intergenerational inequality in Japan 6 May 2021 Author: Sumio Saruyama, JCER Japan has the world’s most aged population. As...

May 7, 2021
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April 2021
23Apr

Combining Flexible Asset Allocation, Sustainable Withdrawals, and Deferred Annuities to provide an Adaptive Lifelong Investing Solution

By Anran Chen, Steven Haberman, Steve Thomas In this paper, we integrate investment decisions in the post-retirement decumulation period with that of the deferred annuity purchase to provide a lifetime decumulation solution. Based on Monte Carlo simulation and historical experience, we use the Perfect Withdrawal Rate (PWR) as a tool to make recommendations on withdrawal rates and asset allocations for different levels of risk preferences. We have a few potentially important findings. First, we illustrate how cheap it is to...

April 23, 2021
Articles, Investment, Pension design, , ,
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08Apr

Longevity Risk and Capital Markets: The 2019-20 Update

By David P. Blake, Andrew J. G. Cairns This Special Issue of the Insurance: Mathematics and Economics contains 16 contributions to the academic literature all dealing with longevity risk and capital markets. Draft versions of the papers were presented at Longevity 15: The Fifteenth International Longevity Risk and Capital Markets Solutions Conference that was held in Washington DC on 12-13 September 2019. It was hosted by the Pensions Institute at City, University of London. Longevity risk and related capital market solutions...

April 8, 2021
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March 2021
22Mar

US. Covid-19 Makes Racial And Class Status Longevity Gaps Worse

Everyone knows the poor die sooner than the rich. Some humans can live past 90, but many don’t have access to the health and wealth that lets humans live a normal human life span. In the last 20 years, all longevity gains for Americans have gone to those in the upper half of the income distribution. Boston University researchers Jacob Bor, Gregory Cohen and Sandro Galea found that income and education gaps in life expectancy widened during the period 1980–2014....

March 22, 2021
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