New Study Reveals Key Factors in Pension Plan Longevity Hedge Effectiveness
The article breaks down how a pension plan can hedge against the risk of people living longer than expected. The effectiveness of the hedge depends on how well it matches the pension liabilities. The study shows that different types of risks, like population changes and recalibration timing, play a big role in how well the hedge works. Overall, these factors can significantly impact the success of the hedge in managing longevity risk.