Longevity and adjustment in pension annuities,with application to Finland |
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| Authors: | Marie-Claire Koissi |
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| Institution: | 1. Department of Mathematics , ?bo Akademi University , F?nriksgatan, 3B, 20500, Turku, Finland lkoissi@abo.fi |
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| Abstract: | The aim of this paper is twofold. First, the improvement in adult mortality in Finland is studied. Lee-Carter (LC) Poisson log-bilinear model is used for mortality forecasting. Secondly, the paper studies how the pension annuities are adjusted to unexpected mortality pattern. A formula for funded plan is proposed. Application is made with Finnish mortality rates predicted using the LC model. |
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| Keywords: | Poisson regression Mortality forecasting Population aging Pension annuity |
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