Speaker(s): Ken Hohman (American Academy of Actuaries), Martin Stevenson (Actuaries Institute), Ted Goldman (American Academy of Actuaries)
In a country where employer-sponsored retirement plans are an essential part of the national retirement system, and employer-sponsored plans have shifted from a defined benefit (DB) orientation to a defined contribution (DC) orientation, there has been a significant transfer of retirement risk from the employer to the employee.Longevity risk is most likely one of the risks that has been assumed, perhaps unknowingly, by employees.The three actuarial associations (AIA, IFoA, and the Academy) determined that longevity risk was a major issue in each of their countries and formed a working group for the preparation of a paper to alert the public and policymakers to our concerns (The challenge of longevity risk).
In 2016-2017, the working group has undertaken a follow-up to this initial paper by underwriting a survey of workers and retirees in each country to assess their preparation for various retirement risks, including longevity risk. A paper setting forth the results of this survey, with analysis, will be published in mid-2017.
The working group proposes to present its analysis at the Congress, to focus on the following:
A discussion of factors inhibiting the adoption of longevity risk solutions, and recommendations for solutions.