Assured Lifetime Income with Higher Yields through Risk Pooling
Modern Tontines solve the retirement challenge by pooling longevity risk.
By design, Modern Tontines allow flexible contributions, personalized benefit options — lifetime or term-specific, immediate or deferred — optional joint-ownership, and the possibility of a bequest.
It is suitable for both pre-retirement saving (accumulation) and post-retirement income (decumulation).
With individualized fully funded schemes, asset allocation can be personalized to fit each investor’s needs, investment preferences, and financial fluency.
By combining traditional asset returns with longevity credits that are uncorrelated to those returns, Modern Tontines are competitive tools in the retirement ecosystem.
With streamlined administration fees and no guarantee charges, their net return is unbeatable.
Efficient P2P Pooling
Modern tontines offer low capital requirements and a low administrative burden, allowing financial institutions to offer lifetime income at low cost.
Nuovalo’s actuarial techniques ensure the fair distribution of lifetime income. Our designs are transparent, sustainable and always fully funded.
Since the collective pooling of longevity is self-insured, there are no guarantee fees for the members and no guarantee-related liability for the provider.
Retirement Portfolio Decumulation: “The nastiest, hardest problem in finance” — William Sharpe
“If you survive your pension savings, you will be poor!
If your savings survive you, that’s equally inefficient.” — Jose Herce
Indeed ! And low interest rates with increased longevity won’t help.
This is the motivation behind our mission to address the retirement crisis with efficient, practical solutions.
A Modular and Flexible Design
Highly customizable benefit and payout options
Heterogeneous membership pools
Perpetual (open-end) pools or fixed-membership (closed-end) pools
Individualized asset allocation
Single & joint life ownership
Possibility of bequest
What if Financial Institutions could tap much deeper into the underserved retirement market ?
…and this solution included:
Individualized payouts and asset allocation
Lower capital requirements
…and was fully funded and forever sustainable ?