Partial splitting of longevity and financial risks: The longevity nominal choosing swaptions

Longevity Risk, Retirement Savings, and Financial Innovation

Over the last couple of decades there have been unprecedented, and to some extent unexpected, increases in life expectancy which have raised important questions for retirement savings. We study optimal consumption and saving choices in a life-cycle model, in which we allow for changes in the distribution of survival probabilities, according to the Lee-Carter (1992) model. We allow individuals t...

Annuity Product Valuation and Risk Measurement under Correlated Financial and Longevity Risks

Longevity risk is a non-diversifiable risk and regarded as a pressing socio-economic challenge of the century. Its accurate assessment and quantification is therefore critical to enable pensionfund companies provide sustainable old-age security and maintain a resilient global insurance market. Fluctuations and a decreasing trend in mortality rates, which give rise to longevity risk, as well as ...

Calorie Restriction, Longevity and Cognitive Function

Scale of Longevity Risks for Pension and Life Annuity Providers

Improved longevity is a human triumph. But improved longevity, when it occurs among those who are no longer economically productive, has a cost. Persistent decrease in mortality rates has become a major concern of annuity and pension providers, especially mortality improvements for post-retirement ages which have significant financial impact as far as survival benefits are concerned. There are ...

Assessing Investment and Longevity Risks within Immediate Annuities

Life annuities provide a guaranteed income for the remainder of the recipient’s lifetime, and therefore, annuitization presents an important option when choosing an adequate investment strategy for the retirement ages. While there are numerous research articles studying annuities from a pensioner’s point of view, thus far there have been few contributions considering annuities from the provider...