My Study Stuff

03/11/2011

longevity risk

Filed under: Business — anlactunay @ 6:37 AM

longevity risk
1. The risk that a pension fund or life insurance company takes on by offering its plans, due to the chance that the company could end up paying out more than anticipated due to increasing life expectancy. The risk is particularly high for any plans that ensure lifetime benefits for the recipient.
2. The risk that the amount of money an individual saves for retirement might not be enough to sustain them, due to increased life expectancy.

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