The modern tontine. An innovative instrument for longevity risk management in an aging society (Q825287)

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The modern tontine. An innovative instrument for longevity risk management in an aging society
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    The modern tontine. An innovative instrument for longevity risk management in an aging society (English)
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    17 December 2021
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    The changing social, financial and regulatory framework lead to the search for new product forms for private pension provision. Authors of the paper propose the traditional tontine to use as a new product especially in combination with a traditional life annuity. To assess the effects of tontine investments on policyholders, authors develop a life utility model based on \textit{multi cumulative prospect theory}. To show the effects of a tontine investment on retirement planning, authors establish the development of the population structure in Germany. Based on the mortality dynamics, they describe a fair revolving tontine. The results obtained show that a portfolio of annuity and tontine can provide the highest expected \textit{multi cumulative prospect theory} utility.
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    life insurance
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    tontines
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    annuities
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    asset allocation
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    retirement welfare
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    aging society
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