Longevity Risk Management in Singapore's National Pension System |
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| Authors: | Joelle H Y Fong Olivia S Mitchell Benedict S K Koh |
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| Institution: | 1. Joyelle H. Y. Fong is a doctoral student and S.S. Huebner Foundation Fellow at the Wharton School, University of Pennsylvania;2. Olivia S. Mitchell is the International Foundation of Employee Benefit Plans Professor of Insurance and Risk Management, and Executive Director of the Pension Research Council/Boettner Center at the Wharton School of the University of Pennsylvania;3. Benedict S. K. Koh is Professor of Finance at the Singapore Management University. |
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| Abstract: | Although annuities are a theoretically appealing way to manage longevity risk, in the real world relatively few consumers purchase them at retirement. To counteract the possibility of retirees outliving their assets, Singapore's Central Provident Fund, a national defined contribution pension scheme, has recently mandated annuitization of workers’ retirement assets. More significantly, the government has entered the insurance market as a public‐sector provider for such annuities. This article evaluates the money's worth of life annuities and discusses the impact of the government mandate and its role as an annuity provider on the insurance market. |
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