Longevity risk

A longevity risk is any potential risk attached to the increasing life expectancy of pensioners and policy holders, which can eventually result in higher pay-out ratios than expected for many pension funds and insurance companies.[1]

One important risk to individuals who are spending down savings is that they will live longer than expected, and thus exhaust their savings, dying in poverty or burdening relatives. This is also referred to as "outliving one's savings" or "outliving one's assets".

Individuals

Individuals often underestimate longevity risk. In the United States, most retirees do not expect to live past 85, but this is in fact the median conditional life expectancy for men at 65 (half of 65-year-old men will live to 85 or older, and more women will).

Low interest rates and declining returns exacerbating longevity risk

The collapse in returns on government bonds is taking place against the backdrop of a protracted fall in returns for other core assets such as blue chip stocks, and, more importantly, a silent demographic shock. Factoring in the corresponding longevity risk, pension premiums could be raised significantly while disposable incomes stagnate and employees work longer years before retiring.

Bibliography

  • Vincent Bazi & M. Nicolas J. Firzli, "1st annual World Pensions & Investments Forum", Revue Analyse Financière, Q2 2011, pp. 7–8
  • Thomas Crawford, Richard de Haan, & Chad Runchey, "Longevity risk quantification and management: a review of relevant literature", The Society of Actuaries, March 2008
  • Gavin Jones, "Financial Aspects of Longevity Risk", Cass School International Conference on Longevity, 18 Feb. 2005

References

  1. ^ (in English) see Stephen Richards & Gavin Jones, "Financial Aspects of Longevity Risk", SI Actuarial Society, 26 Oct 2004, archived from the original on 2006-10-04, retrieved 2004-10-26

General information

Read other articles:

Beau Billingslea Información personalNombre de nacimiento John Billingslea Nacimiento 1944 Charleston, Carolina del SurResidencia Woodland Hills, Los ÁngelesNacionalidad EstadounidenseLengua materna Inglés FamiliaCónyuge Sally Anne V. Billingslea (m. 2014)EducaciónEducado en Universidad de ConnecticutUniversity of Connecticut School of LawFrancis T. Maloney High School Información profesionalOcupación ActorAños activo 1976-presentePerfil de jugadorEquipos UConn Huskies football [...

 

هذه المقالة يتيمة إذ تصل إليها مقالات أخرى قليلة جدًا. فضلًا، ساعد بإضافة وصلة إليها في مقالات متعلقة بها. (يونيو 2019) إدوين يوجين باغلي معلومات شخصية تاريخ الميلاد 29 مايو 1857[1]  تاريخ الوفاة 29 يناير 1922 (64 سنة)   مواطنة الولايات المتحدة  الحياة العملية المهنة مغني، &#...

 

Dair Mar EliaLe monastère partiellement ruiné en 2005.PrésentationType Monastère, ruine (1743)Destination actuelle DétruitFondation 595Construction 595Démolition 2015Religion Église catholique chaldéenneLocalisationPays IrakCommune MossoulCoordonnées 36° 17′ 33″ N, 43° 07′ 52″ ELocalisation sur la carte d’Irakmodifier - modifier le code - modifier Wikidata Le monastère Saint-Élie de Mossoul était un monastère de l'Église syriaque orthodo...

Чорна лагунаісп. El Internado Тип ТелесеріалТелеканал(и) Antena 3 К1, ZoomДистриб'ютор(и) NetflixЖанр Містика, драмаФормат зображення 4:3Тривалість серії 75—85 хв.Тривалість 80 ± 5 хв.Компанія GlobomediadКерівник проєкту Daniel ÉcijadСценарист Gorka Magallónd[1]Режисер Jesús Rodrigod, Alexandra Grafd, Mi...

 

Species of mammoth Pygmy mammothTemporal range: Late Pleistocene to Early Holocene, 0.06–0.011 Ma PreꞒ Ꞓ O S D C P T J K Pg N ↓ Skeleton at the Santa Barbara Museum of Natural History Model of a pygmy mammoth (front) at the Cleveland Museum of Natural History Scientific classification Domain: Eukaryota Kingdom: Animalia Phylum: Chordata Class: Mammalia Order: Proboscidea Family: Elephantidae Genus: †Mammuthus Species: †M. exilis Binomial name †Mammuthus exi...

 

يو-2353   الجنسية  ألمانيا النازية الشركة الصانعة دويتشه ويرفت[1]  المالك  كريغسمارينه المشغل كريغسمارينه (9 يناير 1945–5 مايو 1945)[1]أسطول البلطيق (13 فبراير 1946–17 مارس 1952)[2]  المشغلون الحاليون وسيط property غير متوفر. المشغلون السابقون وسيط property غير متوفر. الت�...

1991 studio album by The Fabulous ThunderbirdsWalk That Walk, Talk That TalkStudio album by The Fabulous ThunderbirdsReleasedDecember 1991GenreBlues rock, Texas bluesLabelEpic AssociatedProducerSteve JordanThe Fabulous Thunderbirds chronology Powerful Stuff(1989) Walk That Walk, Talk That Talk(1991) Roll of the Dice(1995) Professional ratingsReview scoresSourceRatingAllmusic[1]The Penguin Guide to Blues Recordings[2] Walk That Walk, Talk That Talk is a 1991 studio albu...

 

British Labour Co-op politician Stephen TwiggOfficial portrait, 20178th Secretary-General of the Commonwealth Parliamentary AssociationIncumbentAssumed office August 2020Preceded byKarimulla Akbar KhanChair of the International Development CommitteeIn office19 May 2015 – 6 November 2019Preceded byMalcolm BruceSucceeded bySarah ChampionShadow Secretary of State for EducationIn office7 October 2011 – 7 October 2013LeaderEd MilibandPreceded byAndy BurnhamSucceeded byTri...

 

This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed.Find sources: Joyrex J4 EP – news · newspapers · books · scholar · JSTOR (May 2016) (Learn how and when to remove this template message) 1992 EP by Caustic WindowJoyrex J4 EPEP by Caustic WindowReleasedJuly 1992GenreAcid houseLength18:53LabelRephlex Records CAT 004 E...

2005 Manly-Warringah Sea Eagles season < 2004 2006 > The 2005 Manly-Warringah Sea Eagles season was the 59th in the club's history. Coached by Des Hasler and captained by Michael Monaghan, they competed in the National Rugby League's 2005 Telstra Premiership, finishing 8th (out of 15), just reaching the finals series. The Sea Eagles were then knocked out in their first play-off match by minor premiers, the Parramatta Eels. Manly-Warringah made an unexpected bright start to the...

 

Canadian restaurant chain This article is about the restaurant chain. For the physical room of a house, see Recreation room. For the video game, see Rec Room (video game). For the fictional holodeck-like device, see The Practical Joker. The Rec RoomTypeSubsidiaryIndustryEntertainment restaurantsFounded2016 in EdmontonNumber of locations10ParentCineplex EntertainmentWebsitetherecroom.com The REC Room in Square One, Mississauga The Rec Room is a Canadian chain of entertainment restaurants owned...

 

Coin of the Spanish Empire Pieces of eight redirects here. For the album, see Pieces of Eight. Silver dollar of the Catholic Monarchs, after 1497 ReverseFERNANDVS ET ELISABET DEI GR[ATIA]Ferdinand and Elisabeth, by the Grace of God Displays the arms of the Catholic Monarchs post 1492, with Granada in base. Letter S on the left is the sign of the mint of Seville and VIII on the right i.e. eight in roman numerals. ObverseREX ET REGINA CASTELE LEGIONIS A[RAGONIS]King and Queen of Castile, Leon, ...

2016 documentary film by Dominic Rodriguez For referring to the furry's avatar, see Fursona. This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these template messages) This article has an unclear citation style. The references used may be made clearer with a different or consistent style of citation and footnoting. (December 2016) (Learn how and when to remove this template message) This article may need to be rewr...

 

The front cover of the World Port Index, published by the National Geospatial-Intelligence Agency The World Port Index (PUB 150) contains a tabular listing of thousands of ports throughout the world, describing their location, characteristics, known facilities, and available services. Of particular interest are the applicable volume of Sailing Directions and the number of the harbor chart. The table is arranged geographically, with an alphabetical index. The selection of these places is based...

 

У этого термина существуют и другие значения, см. Нижегородская. У этого термина существуют и другие значения, см. Рязанская. Нижегородская Государство  Россия Нижегородская  Медиафайлы на Викискладе Платформа МЦК Нижегородская (на эстакаде) и станция Горьковского ...

Museo di Storia dell'Agricoltura e della PastoriziaPalazzo Salmena, sede del Museo di Storia dell'Agricoltura e della Pastorizia UbicazioneStato Italia LocalitàMorano Calabro IndirizzoVia Giudea, 1 Coordinate39°52′07.1″N 16°08′34.11″E / 39.86864°N 16.142807°E39.86864; 16.142807Coordinate: 39°52′07.1″N 16°08′34.11″E / 39.86864°N 16.142807°E39.86864; 16.142807 CaratteristicheFondatoriFrancesco Mainieri ProprietàComune di Morano Cala...

 

Fruit of several cactus species For the city in Thailand, see Pattaya. For the Thai weightlifter, see Pitaya Tibnoke. Dragon fruit sold in a market in Chiayi, Taiwan A pitaya (/pɪˈtaɪ.ə/) or pitahaya (/ˌpɪtəˈhaɪ.ə/) is the fruit of several different cactus species indigenous to the region of southern Mexico and along the Pacific coasts of Guatemala, Costa Rica, and El Salvador.[1][2] Pitaya is cultivated in East Asia, South Asia, Southeast Asia, the United States, th...

 

Fictional character in The Munsters This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed.Find sources: Herman Munster – news · newspapers · books · scholar · JSTOR (February 2012) (Learn how and when to remove this template message) Fictional character Herman MunsterThe Munsters characterFred Gwynne as Herman MunsterFirst appe...

Species of bird Taiwan blue magpie Conservation status Least Concern (IUCN 3.1)[1] Scientific classification Domain: Eukaryota Kingdom: Animalia Phylum: Chordata Class: Aves Order: Passeriformes Family: Corvidae Genus: Urocissa Species: U. caerulea Binomial name Urocissa caeruleaGould, 1863 The Taiwan blue magpie[2] (Urocissa caerulea), also called the Taiwan magpie, Formosan blue magpie (Chinese: 臺灣藍鵲; pinyin: Táiwān lán què), or the long-tailed ...

 

Men's 200 metres at the 2017 World ChampionshipsVenueOlympic StadiumDates7 August (heats)9 August (semifinal)10 August (final)Competitors49 from 38 nationsWinning time20.09Medalists  Ramil Guliyev   Turkey Wayde van Niekerk   South Africa Jereem Richards   Trinidad and Tobago← 20152019 → Video on YouTubeOfficial Video Events at the2017 World ChampionshipsTrack events100 mmenwomen200 mmenwomen400 mmenwo...

 

Strategi Solo vs Squad di Free Fire: Cara Menang Mudah!