Longevity Risk Management in Singapore's National Pension System
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.
Central Provident Fund, mandate, retirement assets, annuitization
Finance and Financial Management
Journal of Risk and Insurance
Fong, Joelle H. Y.; Mitchell, Olivia S.; and KOH, Benedict Seng Kee.
Longevity Risk Management in Singapore's National Pension System. (2011). Journal of Risk and Insurance. 78, (4), 961-982. Research Collection Lee Kong Chian School Of Business.
Available at: http://ink.library.smu.edu.sg/lkcsb_research/3201