Wed 29 Mar 2023 - Decumulation-only CDC plans provide a retirement income to their members.
They do this primarily by pooling longevity risk among the members. Previous results in this research programme established that decumulation-only CDC plans should be open to new members, to ensure sufficient longevity risk pooling.
When new members are the same as each other, then the results suggest that only about 100 of them need to join each year to get the majority of the longevity risk pooling benefits.
However, it is much more realistic to assume that members join with different amounts of money.
In that case, how many of them are needed to get enough longevity risk pooling?
The research results on this question are presented in the webinar.
Catherine Donnelly is a Professor in the Department of Actuarial Mathematics and Statistics at Heriot-Watt University and is Director of the Risk Insight Lab. Prof. Donnelly is a qualified actuary who has previously worked in the pensions industry. She has a PhD from the University of Waterloo, Canada, an MSc from the University of Oxford and a MA from the University of Cambridge. Her research interests lie in pensions and life insurance, and she has published widely in these areas. She was a member of the USS Joint Expert Panel in 2018. Prof. Donnelly has a keen interest in developing workable solutions to improve people’s financial situation in retirement.
Policy Manager at Institute and Faculty of Actuaries