top of page

Brookings Institution Policy Brief on Retirement Tontines

The work of Richard Fullmer and our sister company, Nuova Longevità Research, is referenced in this thoughtful policy brief published by the Brookings Institution titled Retirement Tontines: A New Way to Finance Retirement Income.

Insightful quotes:

“Considered as a financial innovation, it [the tontine] was very successful. Considered as insurance, it was actuarially sound. Considered as a gamble, it was a ‘fair bet’ … Considered as a life-cycle asset, it proved to be an excellent investment.” — Ransom and Sutch (1987).

“Tontines are investment pools where members commit funds irrevocably and where the interests of members who die are given to those who survive. Tontines were popular in the U.S. in the late 19th and early 20th centuries, until they were effectively prohibited in response to insurance company mismanagement. Tontine-inspired products are receiving renewed attention around the world as efficient, transparent ways to finance retirement. Unlike fixed income annuities, tontine pooling does not guarantee future payments, but should pay more on average per dollar invested, with less costly regulation.”

Additional links:


bottom of page