Tag: longevity
![Coins and graphs](https://crr.bc.edu/wp-content/uploads/2023/07/Coins-and-graphs-1536x1024.jpeg.webp)
The baby boom is beginning to retire and Social Security costs are rising. Commentators often attribute the cost of Social Security to the retirement of the baby boom. Others go so far as to suggest that the baby boom is “a pig in a python,” a large cohort just passing through and once the last…
![Senior couple and tecnologies](https://crr.bc.edu/wp-content/uploads/2022/11/financing_retirement_2-1536x1024.jpg.webp)
The brief’s key findings are: “Longevity bonds” would allow insurers and pension plans to hedge aggregate longevity risk. The bonds’ coupon would rise if a cohort lived longer than expected, offsetting higher annuity costs. Longevity bonds would lower capital requirements for insurers and reduce risk for pension plan sponsors. Governments could take the lead in…