MCFAM Seminar - Pooling longevity for a better retirement income: how many people are needed?

Speaker: Catherine Donnelly

Abstract: Pooled annuity funds are a way of converting retirement lump sum into an income stream for life.   Their objective is to provide a stable lifetime income to their participants.  They rely on the pooling of the participants' longevity risk to do this.  The participants bear all of the longevity risk in a pooled annuity fund, rather than it being transferred to an insurance company.

In the talk, I start with why pooled annuity funds should be a decumulation option for retirement.  Then I discuss the recent results which Thomas Bernhardt (U. Manchester, UK) and I have produced on the number of people needed for a fund to deliver on its objective.