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Facing Up to Longevity with Old Actuarial Methods: A Comparison of Pooled Funds and Income Tontines

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We compare the concepts underlying modern actuarial solutions to pension insurance and present two recently developed pension products-pooled annuity overlay funds (based on actuarial fairness) and equitable income tontines (based on equitability). These two products adopt specific approaches to the management of longevity risk by mutualising it among participants rather than transferring it completely to the insurer. As the market would appear to be ready for such innovations, our study seeks to establish a general framework for their introduction. We stress that the notion of actuarial fairness, which characterises pooled annuity overlay funds, enables participants to join and exit the fund at any time. Such freedom of action is a quite remarkable feature and one that cannot be matched by lifelong contracts.

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BRÄUTIGAM, Marcel, GUILLÉN, Montserrat, NIELSEN, Jens perch. Facing Up to Longevity with Old Actuarial Methods: A Comparison of Pooled Funds and Income Tontines. _The Geneva Papers on Risk and Insurance-Issues and Practice_. 2017. Vol. 42, núm. 3, pàgs. 406-422. [consulta: 22 de gener de 2026]. ISSN: 1018-5895. [Disponible a: https://hdl.handle.net/2445/120691]

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