A group of academics are warning that increases in longevity translate into bad news for those with obligations to pay our pensions or look after us when we are old; to make matters worse, projections of future longevity are also very uncertain.
Kevin Dowd, Professor of Financial Risk Management at The University of Nottingham, together with Professor David Blake from Cass Business School in London and Professor Andrew Cairns of Heriot-Watt University in Edinburgh have calculated that men reaching the age of 65 in 2050 could expect to live until a little over 90.
The researchers say their findings are bad news for those with obligations to pay pensions or otherwise provide for the elderly as it forces them to anticipate large numbers of people living to very old ages. Their projections also suggest that future longevity is highly uncertain. This finding, they say, makes the bad news even worse, and will force many pension funds to seek ways in which they can manage their exposure to longevity risk.
Professor Dowd said: “This is a major problem, not least because the financial instruments needed to manage this risk do not currently exist.”
The group investigated longevity risk with the use of fan charts calibrated on mortality data for English and Welsh males over the period of 1962 to 2002. However, they believe there’s every reason to expect that similar findings would be obtained for both males and females for any comparable countries.
Emma Thorne | alfa
How Strong Brands Translate into Money
15.11.2016 | Kühne Logistics University - Wissenschaftliche Hochschule für Logistik und Unternehmensführung
Demographic change depresses tax revenues
04.11.2016 | Fraunhofer-Institut für Angewandte Informationstechnik FIT
An important step towards a completely new experimental access to quantum physics has been made at University of Konstanz. The team of scientists headed by...
Yersiniae cause severe intestinal infections. Studies using Yersinia pseudotuberculosis as a model organism aim to elucidate the infection mechanisms of these...
Researchers from the University of Hamburg in Germany, in collaboration with colleagues from the University of Aarhus in Denmark, have synthesized a new superconducting material by growing a few layers of an antiferromagnetic transition-metal chalcogenide on a bismuth-based topological insulator, both being non-superconducting materials.
While superconductivity and magnetism are generally believed to be mutually exclusive, surprisingly, in this new material, superconducting correlations...
Laser-driving of semimetals allows creating novel quasiparticle states within condensed matter systems and switching between different states on ultrafast time scales
Studying properties of fundamental particles in condensed matter systems is a promising approach to quantum field theory. Quasiparticles offer the opportunity...
Among the general public, solar thermal energy is currently associated with dark blue, rectangular collectors on building roofs. Technologies are needed for aesthetically high quality architecture which offer the architect more room for manoeuvre when it comes to low- and plus-energy buildings. With the “ArKol” project, researchers at Fraunhofer ISE together with partners are currently developing two façade collectors for solar thermal energy generation, which permit a high degree of design flexibility: a strip collector for opaque façade sections and a solar thermal blind for transparent sections. The current state of the two developments will be presented at the BAU 2017 trade fair.
As part of the “ArKol – development of architecturally highly integrated façade collectors with heat pipes” project, Fraunhofer ISE together with its partners...
19.01.2017 | Event News
10.01.2017 | Event News
09.01.2017 | Event News
20.01.2017 | Awards Funding
20.01.2017 | Materials Sciences
20.01.2017 | Life Sciences