Researchers predict pensions catastrophe

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.

Media Contact

Emma Thorne alfa

Weitere Informationen:

http://www.nottingham.ac.uk

Alle Nachrichten aus der Kategorie: Business and Finance

This area provides up-to-date and interesting developments from the world of business, economics and finance.

A wealth of information is available on topics ranging from stock markets, consumer climate, labor market policies, bond markets, foreign trade and interest rate trends to stock exchange news and economic forecasts.

Zurück zur Startseite

Kommentare (0)

Schreib Kommentar

Neueste Beiträge

New materials: A toggle switch for catalysis

Electrochemical reactions, which will play an important role in the future of energy supply, can now be explained in detail, thanks to measurements carried out by TU Wien and DESY….

New approach to exotic quantum matter

While in a three-dimensional world, all particles must be either fermions or bosons, it is known that in fewer dimensions, the existence of particles with intermediate quantum statistics, known as…

Flood risks: More accurate data thanks to Covid-19

Emerging use of Global Navigation Satellite System (GNSS) makes it possible to continuously measure shallow changes in elevation of Earth surface. A study by the University of Bonn now shows…

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close