Tag: pensions
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…
The brief’s key findings are: Among workers whose employers offer a pension plan, participation rates are much lower for low earners and have declined over time. The decline is largely due to the rise of 401(k)s. Low earners often cite monetary constraints, though non-monetary reasons are also important. On the non-monetary side auto-enrollment should help,…
