Longevity Risk

The risk of outliving one's assets. In other words, the risk of running out of money during retirement. In most countries, average life expectancy has increased dramatically over the past several decades. Longer lifespans are somewhat of a mixed blessing because of the financial burden associated with more years of retirement. Individuals, insurance companies and governments are exposed to the financial pressures created by the need to finance increasing longevity. Longevity risk is a key challenge for many societies around the world.

The Singularity Presents an Extreme Scenario for Retirement and Annuities

There is a prominent and growing group of people who believe that the exponential pace of technological progress will have a profound near-term impact on society.  Singularity is a term often associated with this school of thought.

American Academy of Actuaries Supports Annuities as Efficient Way to Address Longevity Risk

The American Academy of Actuaries (AAA) responded to the Request for Information that was developed by the Departments of Labor and Treasury earlier this year. The Academy's full response can be viewed here .

Longevity Annuity Sales Have Been Slow

Financial Planning reports that sales of longevity insurance or longevity annuities have been slow over the past couple of years. Many companies, including MetLife and The Hartford , have introduced products that are specifically intended to address longevity risk. However, sales of the products have been slower than many industry executives would have expected.

Aegon Offers Blueprint to Deal with U.K. Longevity Crisis

One of the world's largest financial services companies, Aegon , has released a "manifesto" that provides a blueprint for dealing with the longevity crisis in the United Kingdom. Aegon published its pension manifesto this week under the title: "The Pension Crunch: proposals for change."

Demographics and Longevity Risk

The CFA Institute recently published an interview with Amlan Roy in the March/April issue of CFA Magazine. Amlan Roy is the head of global demographics and pension research at Credit Suisse in London.