Featured Research

from universities, journals, and other organizations

Researchers Predict Pensions Catastrophe

Date:
November 30, 2007
Source:
University of Nottingham
Summary:
Recent increases in our longevity could have disturbing implications for the government, pension companies and life insurance industries. A group of academics are warning that increases in longevity translate into bad news for those with obligations to pay our pensions or look after us when we are old; to make matters worse, projections of future longevity are also very uncertain.

Recent increases in our longevity could have disturbing implications for the government, pension companies and life insurance industries.

Related Articles


A group of academics are warning that increases in longevity translate into bad news for those with obligations to pay our pensions or look after us when we are old; to make matters worse, projections of future longevity are also very uncertain.

Kevin Dowd, Professor of Financial Risk Management at The University of Nottingham, together with Professor David Blake from Cass Business School in London and Professor Andrew Cairns of Heriot-Watt University in Edinburgh have calculated that men reaching the age of 65 in 2050 could expect to live until a little over 90.

The researchers say their findings are bad news for those with obligations to pay pensions or otherwise provide for the elderly as it forces them to anticipate large numbers of people living to very old ages. Their projections also suggest that future longevity is highly uncertain. This finding, they say, makes the bad news even worse, and will force many pension funds to seek ways in which they can manage their exposure to longevity risk.

Professor Dowd said: “This is a major problem, not least because the financial instruments needed to manage this risk do not currently exist.”

The group investigated longevity risk with the use of fan charts calibrated on mortality data for English and Welsh males over the period of 1962 to 2002. However, they believe there's every reason to expect that similar findings would be obtained for both males and females for any comparable countries.


Story Source:

The above story is based on materials provided by University of Nottingham. Note: Materials may be edited for content and length.


Cite This Page:

University of Nottingham. "Researchers Predict Pensions Catastrophe." ScienceDaily. ScienceDaily, 30 November 2007. <www.sciencedaily.com/releases/2007/11/071129113734.htm>.
University of Nottingham. (2007, November 30). Researchers Predict Pensions Catastrophe. ScienceDaily. Retrieved December 19, 2014 from www.sciencedaily.com/releases/2007/11/071129113734.htm
University of Nottingham. "Researchers Predict Pensions Catastrophe." ScienceDaily. www.sciencedaily.com/releases/2007/11/071129113734.htm (accessed December 19, 2014).

Share This


More From ScienceDaily



More Computers & Math News

Friday, December 19, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Building Google Into Cars

Building Google Into Cars

Reuters - Business Video Online (Dec. 19, 2014) Google's next Android version could become the standard that'll power your vehicle's entertainment and navigation features, Reuters has learned. Fred Katayama reports. Video provided by Reuters
Powered by NewsLook.com
After Sony Hack, What's Next?

After Sony Hack, What's Next?

Reuters - US Online Video (Dec. 19, 2014) The hacking attack on Sony Pictures has U.S. government officials weighing their response to the cyber-attack. Linda So reports. Video provided by Reuters
Powered by NewsLook.com
Navy Unveils Robot Fish

Navy Unveils Robot Fish

Reuters - Light News Video Online (Dec. 18, 2014) The U.S. Navy unveils an underwater device that mimics the movement of a fish. Tara Cleary reports. Video provided by Reuters
Powered by NewsLook.com
How 2014 Shaped The Future Of The Internet

How 2014 Shaped The Future Of The Internet

Newsy (Dec. 18, 2014) It has been a long, busy year for Net Neutrality. The stage is set for an expected landmark FCC decision sometime in 2015. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Space & Time

Matter & Energy

Computers & Math

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins