LONGEVITY RISK
- The risk by which a pension fund or life insurance company might be exposed due to higher-than-expected payout ratios. This occurs because of the rising life expectancy trends among policy holders and pensioners, which leads to having a higher payout levels than what a firm or fund initially accounts for. The plans that are vulnerable to highest levels of longevity risk are defined-benefit pension plans and annuities that assures lifetime benefits for plan or policy holders.
- The peril that the money a person saves for retirement might not be sufficient to sustain them because of increased life expectancy.
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A kind of contract or promise that requires a party to conduct some action. For example, a bond covenant which provides that the issuer must delive ...
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Goods and/or financial products that are not taxable. Having the tax free status allows an entity to save money and encourages additional spending ...
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