RT Journal Article
SR Electronic
T1 The Tontine: <em>An Improvement on the Conventional Annuity</em>?
JF The Journal of Retirement
FD Institutional Investor Journals
SP 37
OP 48
DO 10.3905/jor.2014.1.3.037
VO 1
IS 3
A1 Paul Newfield
YR 2014
UL https://pm-research.com/content/1/3/37.abstract
AB This article examines the relative merits of a tontine, or pooled-survival fund (“PSF”), as a way of providing longevity insurance, compared with conventional instruments like a life annuity. The current economic, financial, and regulatory environments in much of the industrialized world have increased this long-forgotten instrument’s attractiveness.The article advances the case that a PSF, the modern version of a tontine, can provide a superior combination of longevity insurance and income compared with traditional solutions and annuities in particular. Given the scale and robust legislative, governance, and operational framework of the defined contribution pension systems in many countries around the world (and Australia’s superannuation system in particular), the PSF could be readily integrated into the existing pension system. The result will be a superior benefit for pension plan members that does not strain the regulatory framework.TOPICS: Retirement, pension funds, legal/regulatory/public policy