Second, the government can issue longevity bonds (also known as survivor bonds), which would allow life insurance companies to hedge
longevity risks more effectively.
In order to address the
longevity risks among the workers in the unorganised sector, and encourage them to voluntarily save for retirement, the government had started the Swavalamban Scheme in 2010-11.
But
longevity risks present challenges of their own.
The Modi government had launched APY in May 2015 to address the
longevity risks among the workers in unorganised sector and to encourage the workers in unorganised sector to voluntarily save for their retirement last year.
Further, the strategy will primarily benefit middle income clients, as very high net worth clients likely have other options available to protect against
longevity risks, and lower income clients may not have the resources available to annuitize.
A: A lump sum window in which a group of participants not in pay status can elect during a specified window of time to receive payment of all of their plan benefits is one way to reduce a defined benefit plan's exposure to market and
longevity risks. If done at the right time, this strategy can result in significant employer savings.
This approach has really resonated with my clientele as well as new prospects because it addresses market, inflation and
longevity risks.
"People have no clue about
longevity risks and withdrawal rates so they need help," said one.
Germany-based automobile maker BMW has announced that it has offloaded its
longevity risks in pensions to Germany-based Deutsche Bank (NYSE: DB).
LONDON: German car maker BMW is set to announce a deal on Monday to offload 3 billion pounds ($4.62 billion) of
longevity risks from its UK pension scheme to Deutsche Bank, the Financial Times reported.
Bavarian Motor Works AG (BMW) (Xetra: BMW), a Germany-based automaker, is in discussion to offload GBP2.5bn of
longevity risks from its United Kingdom pension scheme, according to the Financial Times.
