Nuovalo’s consulting services help policymakers, regulators, and financial services companies evaluate the pros and cons of tontines relative to other products and to evaluate the pros and cons of various retirement income approaches and to evaluate various tontine designs.

Our consulting team can engage with you on tontine finance education, modeling outcomes, developing asset and product allocation strategies, or designing just the right solution for your business.

Tontine design involves a carefully crafted blend of actuarial science and investment strategy, and we offer both. Our consulting clients include both governments and businesses. We take pride in providing unbiased research and unbiased opinions.


Tontine pensions can provide assured lifetime income at lower cost than existing solutions. They do this by collectively pooling longevity risk among their members, rather than concentrating it all as a liability to be borne by a plan sponsor or third-party insurer. By eliminating the overhead associated with liability hedging and insurance, fees are low and completely transparent.

Many designs are possible. The simplest design may be a type of closed-end lottery pool, as was the case of ancient tontines, in which the tontine takes in contributions from some initial set of participants and pays out a nominal amount that grows exponentially over time as members die. However, it is also possible to engineer the payouts with different payout trajectories – for example, with higher payouts early in retirement that grow at a more modest rate. Furthermore, tontines need not be closed-end structures. The pool may be open-end and perpetual, continually taking in new members to replace those who have died.

The challenge is to make the arrangement fair. For example, consider a tontine in which the payout rates are the same regardless of a member’s age or gender. Such a tontine would favor the young over the old and women over men since these demographic groups are more likely to survive longer and thus receive greater payouts.

We have solved this challenge through a set of proprietary actuarial design techniques and methods that ensure fairness and facilitate the distribution of assured lifetime income to each participant. Moreover, our designs are engineered to be fully funded and fully sustainable.

Absent this capability, tontine providers would have to resort to launching multiple closed-end pools with limited demographic membership: for example, a separate pool for men and women, and separate pools for people of every birth cohort. While we can support such closed-pool designs in specialized cases, we can also support larger open-pool designs that remain open to new members and run in perpetuity. Such open-ended pools are much more efficient, not only to the tontine provider since it is cheaper to manage one large product than many small products (economies of scale), but also to the investors since larger pools provider greater longevity risk diversification (the law of large numbers).

Our design capabilities include:

We package these design capabilities under a business-to-business (B2B) software as a service delivery model (SaaS).