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Adding a pure longevity insurance payout option to the CPP would go a long way to ease the pain of private sector employees with disappearing pensions. This blog adds some meat to the proposal I mentioned in last week’s PRPP or expanded CPP? … Continue reading
The debate whether Canadians would be better of with the PRPP or an expanded CPP was recently reignited with the Ontario government (rightly) re-thinking the wisdom of the PRPP over an expanded CPP. This morning’s news that McKinsey has issued … Continue reading
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Longevity Insurance- What does it buy you? As mentioned often, retirees are exposed to three major risks: (1) longevity risk, (2) inflation risk and (3) market risk. In many ways these three risks are intertwined and they all lead … Continue reading
Longevity Insurance (Delayed Payout Annuities): Forget About Immediate Annuities- The Most Efficient Annuitization is 5-10% of Wealth Allocated to Longevity Insurance! Scott, Watson and Hu in their Pension Research Council paper “Efficient Annuitization: Optimal Strategies for Hedging Mortality Risk” prove … Continue reading
Longevity Insurance The uncertainty of one’s age at death, results in the biggest fears of retired persons, i.e. that they’ll run out of assets before they die. The risk of living too long constrains spending during “active” retirement years. Actually … Continue reading
