Governments to Issue Longevity Bonds for Fairly Sharing Retirement Risk
Longevity bonds issued by governments can help spread the risk of people living longer among different generations. This means that retirees today can rely on future generations to help manage the risk of living longer than expected. These bonds can make pension savings and annuity markets more secure and efficient. By issuing longevity bonds, governments can also support the development of reliable measures for longevity risk and help create a market for financial products linked to longevity.