Tag: insurance company annuity
![older couple with advisor discussing finances](https://crr.bc.edu/wp-content/uploads/2022/12/older-couple-with-advisor-discussing-finances.jpg)
Retirees have long been reluctant to spend the money they’ve accumulated in their 401(k) savings plans. But it also used to be common for retirees to have a traditional pension to cover their regular expenses. By the time the baby boomers came along, pensions were available to a dwindling minority of workers, and it isn’t…
![Senior man calculating finances](https://crr.bc.edu/wp-content/uploads/2022/11/financing_retirement_1-1536x1024.jpg)
Abstract Using the Lee-Carter mortality model, we quantify aggregate mortality risk, the risk that annuitants might live longer than predicted by the model. We calculate that a markup of 4.3 percent on an annuity premium, or else shareholders’ capital equal to 4.3 percent of the expected present value of annuity payments, would reduce the probability…