The Pros And Cons Of Longevity Swaps

On August 17, 2006 the Pension Protection Act of 2006 (the Act) was signed into law. The Pension Protection Act ("PPA") [P.L. 109-280] originated as a single-employer defined benefit pension funding reform bill to strengthen the DB pension system. However, it is best known for the number of provisions to enhance 401(k) and 403(k) plans, especially the auto enrollment feature. Among other noteworthy provisions are those intended to remove legal obstacles to, and create new incentives for, automatic enrollment 401(k) and 403(b) plans. It represents one of the most comprehensive pension reform legislation since ERISA was enacted in 1974. The Act has lead to many companies changing the way their plans are designed and administered, amend plan documents, increase plan funding, and make additional plan disclosures in regulatory filings and to plan participants. The Act made many sweeping changes but for the sake of brevity, only the automatic enrollment plan made by employers on the behalf of its employees is addressed in this report as to the rationale behind the passage of the PPA. Even though the provisions generally apply both to 401(k) and 403(b) plans, for explanatory purposes all references will refer only to 401(k) plans.

14th August 2015 marked the 80th anniversary after President Franklin Roosevelt signed the Social Security Act in the year 1935. The program has been important in alleviating poverty amongst the elderly population. However, the system has started to how its age. The OASID (Social Security and Disability Insurance Trust Funds) is presently running on cash deficit as the baby boomers retire. The DI (Disability Insurance) program has been running on deficits for several uses and has been predicted to exhausts the trust fund. The social security provides important income security to millions of the beneficiaries but is on towards insolvency. Presently, the Social Security program pays more in benefits that it is collecting in revenue and has been projected that the trusts funds will run out in the year 2033 (Bernan Press, 204). At this instance, all the beneficiaries regardless of income and age will face an immediate twenty-three percent benefits cut. The longer term OASI would need more than a 4 percent point rise in the payroll tax so as to close the gap in funding over the next 75 years or benefits would have to be reduced below the promised 27 percent level by the year 2090 (Bernan Press, 2014). The focus of the paper is on the issue of solvency of social security fund

GAASB is proposing some major improvements to the reporting of pension plans. (GASB Proposes Major Improvements for Pension Reporting, 2011). Immediate recognition of more components of pension expense will be required, including the effect on the pension liability of changes in benefit terms, rather than deferred and amortization over as many as 30 years. Use of a discount rate will be required that applies the expected long term rate of return on pension plan investments where pension assets are expected to be available to make projected benefit payments and the interest rate on a tax exempt 30 year AA or higher rated municipal bond index to projected benefit payments where plan assets are not expected to be available for long term investment in a qualified trust. A single actuarial cost allocation method, the entry age normal, will be required. Governments participating in cost sharing multiple employer plans will be required to record a liability equal to their proportionate share of any net pension liability for the cost sharing plan as a whole. Governments in all types of covered pension plans will be required to present more extensive note disclosures and required supplementary information.

For those who purchase a long-term care insurance policy at age 60, the probability it will be

A review on pensions may postpone the retirement until citizens are in their 70’s in the UK. The review is most likely to affect those under the age of 55. The review, would needto follow current legislation, and “ ‘make sure that the state pension is sustainable and affordable for future generations.’ ”. The question of if the state pension system will go hand and hand with a rising life expectancy rate in the long run. The review will also take in consideration that should the retirement age still increase of life expectancy slows. The pension age currently in the UK is 67 as of 2008 for both male and female citizens. Pensions minister Baroness Roz Altmann states that “ ‘ It’s not just about raising it [state pension age],

A general fear of having flexibility in a seniors retirement years is a concern when

DHFL Pramerica Smart Income is a non-participating endowment insurance plan that has been designed for customisation to meet the future financial needs of the life insured and his/her loved ones. The guaranteed annual income payouts under this plan ensure that the life insured and his/her family have a steady income post maturity. On the other hand, the Death Benefit provides financial security to the loved ones when the life insured is no longer around to personally take care of them. This guaranteed savings cum protection plan allows aligning the policy as per the unique needs of the policyholder.

These two literature also brings attention to the topic of retirement and the need for retirement planning and decision making. Chapter 14 points out the plans that the aged needs to consider when it comes to retirement. It describes two types of plans to be considered to include the defined benefit. With the defined plan workers receive a monthly benefit based on their years of service with an establishment and their prior earnings. Then there are the defined contribution plans that workers and/or employers make contributions into a fund, which is invested on behalf of the

Even retirees who are careful about for their futures can’t account for everything. Unexpected life events such as deaths, life-threatening illnesses, and accidents occur. When this happens, what we often see is retirees ceasing to contribute to their accounts, or borrowing against their retirement due to costs associated with these unforeseen events. According to the HSBC, 27 percent who face these struggles say they would dip into their accounts, 13 percent were prevented from working due to accident or illness, and 6 percent ceased working to care for a spouse, therefore unable to afford monthly contributions.

To ensure the best health care provided to older adults, nurses need to apply the nursing process to all their patients to reduce their hospitalization and help them live better lives. This also provides the health care provider all the information needed to plan their care. L. Lilley, S. Collins, and J. Snyder (2013) explain the importance of lifespan considerations with elderly patients, “More than 80% of patients taking eight or more drugs have one or more chronic illnesses. More complicated medication regimes predispose elderly patients to self-medication errors, especially those with reduced visual acuity and manual dexterity.” (p. 43) Considering our patients age of being over 65, special considerations are needed

In “L'Chaim and Its Limits: Why Not Immortality?” and “Decelerating and Arresting Human Aging”, Leon Kass and Walter Glannon are both arguing against life extension, as it will bring no good to our society. Life extension is a technology that would allow a person to extend their lifespan past their expected age of death. In this paper, I will be arguing against life extension, as we will have no motivation to complete our intentions in life when we are given more time to live, and it would also do us no good when it comes to controlling the growing number of retirees when they can take advantage of life extension.

The insurance industry has long been applying game theory to evaluate whether or not individuals are insurable and determine how much premium to charge them based on their apparent needs. This interaction between the consumer and the insurance company can be characterized as a game because not only are they playing against one another but each party is waging on an outcome more beneficial to them. In a traditional life insurance, there are many variables to consider when utilizing game theory to form a strategy as there are investment components along with complex riders. Thus, in order to keep the game relatively simple, this paper will assume the insurance being considered is term life and use game

So what does that mean. Basically it means, the person buying the insurance will pay a fee (usually a monthly fee), for a specific amount of coverage (dollar amount), that is only valid for an increment of years, such 10 years, 20 years, etc. The amount paid to the beneficiaries will only occur if the person buying the insurance becomes deceased during the term. At the end of the term, the person will need to consider renewing the policy or even buying another policy.

Outlast, a jump out of the chair scary game, has plenty of moments where you feel like you have begun your descent into the bowels of hell. An intense game that does not leave you with much to defend yourself, most of the time, your best defense will be to run and hide. You start the game as the investigative journalist Miles Upshur who decides to check out the abandoned asylum. Sounds like a great idea! What could possibly go wrong?

Modern governments promise old age security, which ensures that their citizens can fend for themselves during old age. The approaches, however, may vary from society to society. In some like The United Kingdom and Canada, government pensions are distributed to the elderly. In some others such as Singapore, the people are compelled to provide in advance for their old age dependency. Some societies have laws in place to enforce children to take care of elderly parents. For example, in Singapore, elderly parents may file in to the court if their children do not provide for them. However, there are various financial concerns about these methods. In the case of government pensions, the heavy spending of public fund on the old aged may take a toll on other areas of the nation’s development. Thus a method that works in a society may not work in another and sometimes, multiple approaches have to be taken.