Last week, Olga Fuentes, from the Pension Regulator in Chile, presented a proposal to introduce Longevity Income Pools in Chile, coauthored with our CEO Richard and our Chief of Global Strategy and Operations Manuel, twice! First at the Global Pensions Program 2021 organized by the Interamerican Development Bank (IDB), Novaster, and the London School of Economics (LSE), and second at the 2021 Colloquium on Pensions and Retirement Research, organized by Centre of Excellence in Population Ageing Research (CEPAR).
The paper simulates several possible designs, including stand-alone traditional or deferred arrangements and combinations with existing pay-out products in Chile. It also compares the results with other reform proposals in Chile. Interestingly, the explored designs do not distort the Chilean annuity market. It, therefore, shows that these two products can be supplementary if annuity markets exist, like Chile, or enable efficient longevity risk sharing in places with thin or nonexistent annuity markets.
You can find the 29th Colloquium on Pensions and Retirement Research here (English):
(Olga Fuentes presentation about "A sustainable, Variable Lifetime Retirement Income Solution for the Chilean Pension System" starts at minute 44 )
Here is the video of the Global Pensions Program 2021 (Spanish):
(Olga Fuentes presentation starts at minute18:40)
The paper will be available soon.
Stay tuned!