Tag: Longevity Insurance
Social Security’s design is known to help Black individuals and those with lower socioeconomic status due to the progressive benefit formula, but this effect is partially offset by the shorter life expectancies of these groups. However, valuing Old-Age and Survivors Insurance (OASI) solely on expected benefits neglects the program’s longevity insurance value, which favors individuals…
The brief’s key findings are: Annuities offer one way for retirees to turn savings into lifelong income, but these products are expensive. A less expensive alternative advocated by some finance experts is a “tontine,” a product that does not currently exist in the marketplace. A tontine would offer investors regular payments that start out smaller…
