http://viableopposition.blogspot.ca/2013/12/longevity-risk-transfers-next-financial.html
At the end of 2011, there were about
$20 trillion worth of private pension assets globally with about 65 percent of
them being defined benefit, a type of pension plan that is proving to be quite
worrisome given the large pool of retirees who are planning to live to be 100
years of age looming in most developed nations. From a financial
perspective, the total risk associated with each additional year of life adds
between three and four percent to the present value of liabilities of a defined
benefit pension plan. With the total global amount of annuity and
pension-related longevity risk ranging from $15 trillion to $25 trillion, a one
year increase in longevity will cost pension plans an additional $450 billion
to $1 trillion, a huge risk.
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