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Unsatisfied with the pace of retirement income innovation in the country, the Australian Government Department of the Treasury released a consulting paper at the end of 2023 titled Retirement Phase of Superannuation. It noted that the superannuation industry has largely focused on the goals of the accumulation phase, with relatively little attention on addressing the following goals of the decumulation phase: to maximize retirement income, to manage risks to the sustainability and stability of that income, and to maintain flexible access to capital. In the paper, the Treasury asked for feedback from the public on ways to achieve these goals, and Nuovalo was encouraged to make a submission. We were happy to do so and submitted a response paper that discusses the merits of shared longevity risk pooling as a highly efficient way to achieve these important goals. Our response also outlined different ways that such pools could be implemented, including an innovative idea for maximizing efficiency while also eliminating portability problems by creating a nationwide longevity risk pool that could be shared across all superannuation providers. "Longevity risk-sharing pools offer substantial benefits to the superannuation system, including greater economic efficiency for the system as a whole and substantially higher income for retirees. Moreover, risk sharing would facilitate greater adoption of lifetime income through features that address many of the factors underlying the so-called annuity puzzle. Our comments discuss how a solution could be implemented most efficiently, allowing for standardization where it makes sense and maintaining the ability of superannuation providers to freely innovate and differentiate." Read the full text of our submission here.

The dawn of a new calendar year is the perfect time to pause and reflect on the past year. In addition to client engagements, Nuovalo is on a mission to explore, collaborate, and share insights across various corners of the globe. The year 2023 was an exciting one for us... Uruguay: Revolutionizing the Decumulation Market We completed an extraordinary project on pension reform in Montevideo, Uruguay, where we worked with a team led by the Central Bank and the Ministry of Finance. Our task was to propose and analyze the introduction of a longevity risk-sharing option into Uruguay's defined contribution (DC) system. This initiative set the stage for what could be a landmark development in regional pension reform. Canada: Pioneering Fully Funded Longevity Risk-Sharing Solutions Our journey continued with a significant project for one of the largest DC plans in Canada to design a fully funded lifetime income solution that incorporates longevity risk-sharing. This project was done in close collaboration with Eckler, Canada’s largest independent pension consulting firm. Retirement plan regulation occurs at the provincial level in Canada, and we are eager for the first provinces begin to adopt reforms that will allow DC plan participants to obtain lifetime income at a very low cost through pooling longevity risk with other participants. Chile: Advancing Research, Policymaking and Tackling Labor Informality In collaboration with the pensions regulator in Chile, we completed an extensive research paper that has been accepted for publication in The Geneva Papers on Risk and Insurance. This accomplishment reflects our commitment to advancing the field of pension management and creating academic-grade proposals to introduce longevity risk-sharing in different jurisdictions within Chile. Concurrently, we are playing a pivotal role in a blue-ribbon roundtable addressing labor informality, a critical issue affecting millions in Chile. These efforts underscore our dedication to advancing the study of practical solutions for pervasive economic challenges that affect retirement income. Indeed, Manuel García Huitrón, one of Nuovalo´s founders, was appointed technical secretary of an influential private sector roundtable comprised of a diverse group of leaders, economists, lawyers, and specialists and tasked with studying and devising proposals to tackle labor informality affecting 2.4 million Chilean workers. Labor informality, which impacts nearly 27% of the Chilean employed population, has far-reaching consequences on individuals and the economy, making this collaborative effort a crucial step toward a more formalized and protected labor market in Chile. Global Presence: Insights and Influences Across Continents Our team has been prominent at various international conferences throughout the year, disseminating our expertise on DC risk-sharing arrangements for lifetime income. Our engagements included: Washington DC, USA: The 2023 Global Pensions Programme hosted by the Inter-American Development Bank (IDB) and co-organized with the London School of Economics, PinBox Solutions, and Novaster. The audience comprised pension regulators, policymakers from Latin America, and global experts on relevant topics. During the conference, the IDB launched a flagship publication entitled “The Future of Work in Latin America and the Caribbean: How to Move Towards Sustainable Pensions for longer-lived Societies?” coauthored along with two of Nuovalo´s founders. Download the publication here. Philadelphia, USA: The 2023 Pension Research Council symposium on Diversity, Inclusion, and Inequality: Implications for Retirement Income Security and Policy, which explored the determinants and dynamics of socioeconomic inequality in retirement income outcomes. Nuovalo is keenly interested in this subject and ways to promote fairness within pension systems worldwide. Austin, USA: The 2023 Innovation Forum hosted by Sage Investment Advisory, where we presented on Innovations in Retirement Decumulation: Pooled Longevity Risk Pooling. Mexico City, México: Our journey led us to Mexico in October, where we joined local industry leaders and policymakers at the Encuentro Amafore 2023, organized by the local pension funds association. The Mexican pension system individual DC system is about to start its decumulation phase. We stressed the importance of holistic risk management in pension decumulation, covering conversion, longevity, and inflation risks. Our insights also touched on international best practices, including robust choice architectures, annuity market promotion, mutualization of retirement funds, dynamic mortality tables, and fostering transparency and competition in pension product markets. Copenhagen, Denmark: The 2023 Discussion Forum hosted by the International Centre for Pension Management (ICPM). The annual event brings together leading minds in the field of pension management to facilitate insightful discussions on critical industry topics. Day two of the program focused on Longevity Risk and Decumulation Strategies, where Nuovalo presented advances in the practical implementation of longevity risk sharing at low cost. Salzburg, Austria: Nuovalo proudly participated in the KFAS-Salzburg Global Leadership Initiative, held against the backdrop of Schloss Leopoldskron in Salzburg, Austria. This inaugural cohort brought together 34 leaders from diverse backgrounds and over 20 countries to explore global challenges such as Demographic Transition, Financial Sustainability, Diverging Values, Immigration, and Intergenerational Mobility. As we look forward to follow-up network meetings and collaborative endeavors in 2024, our commitment to shaping a sustainable future remains unwavering. Maastricht, The Netherlands: We immersed ourselves in the ICPM-Maastricht Program on Trust-Building Through Effective Communications, a transformative journey into the importance of strategic communication in pensions and emphasizing the need for trust-building and bridging ideological divides in polarized times. We wholeheartedly recommend this program to industry peers seeking a blend of theory and practical wisdom. São Paulo, Brazil: We shared insights on Innovations for the Decumulation Stage with Brazilian pension executives at the International Seminar 2023 of the ABRAPP – Associação Brasileira das Entidades Fechadas de Previdência Complementar. Our presentation explored the transformative potential of Longevity Income Funds in Latin America's pensions landscape. Brussels, Belgium: We were invited by the National Bank of Belgium to give a lecture at their Actuarial Science Seminar titled Modern Pensions: How to protect retirees at minimum cost. The talk focused on the merits and practical implementation of longevity risk-sharing solutions, emphasizing efficient design, actuarial fairness, transparency, and the importance of maintaining the fully funded status of every participant’s account to ensure the ongoing sustainability of the plan. Tegucigalpa, Honduras: Nuovalo participated at a conference hosted by the Banco Interamericano de Desarrollo and the Honduran Comisión Nacional de Seguros y Valores (CNSV), where we spoke on two topics: 1) The Importance of Local Capital Markets in Promoting Economic Development, focusing on the role of retirement bonds in capital markets development, and 2) Innovative Products for Managing Longevity Risk, exploring cutting-edge longevity income pool solutions in the pensions landscape. Global: The release of the Mercer-CFA Global Pensions Index 2023 marked an exciting milestone in the field. One of Nuovalo´s cofounders is part of the International Academic Board of the project. This edition offers valuable insights into global pensions and delves into the intricate relationship between pensions and artificial intelligence (AI). Global: One of the co-founders at Nuovalo is an esteemed member of the global Selfies for Retirement Security collective dedicated to assisting governments in adopting retirement bonds. A notable accomplishment in this realm is Brazil's launch of its variant of these bonds in January 2023, accompanied by an education bond that follows akin design principles. This effort is part of a broader effort to guide governments toward establishing more efficient and inclusive pension systems. Retirement bonds offer a viable decumulation strategy for the initial 20 years of retirement. Combined with Nuovalo's longevity income pools, they provide a comprehensive solution for effectively managing longevity risk while also providing for liquidity needs. Latin America: A Nuovalo co-founder led a discussion at the JASPER Forum, a platform for gathering experts renowned for its focus on pension innovation. Alongside esteemed experts Diego Valero and David Tuesta, we delved into the dynamics and challenges of Latin America's defined contribution pensions. The JASPER forum provides a unique platform to exchange groundbreaking ideas and insights with a global audience of professionals and academics. Our discussion was an exploration of current practices and an opportunity to envision new directions for the future of pension systems in Latin America. Thanks to John Mitchem and Jorik van Zanden, founders of the Forum, for this prestigious opportunity to contribute to such an impactful event. Research Throughout 2023, we continued to uphold our reputation as a research-driven startup. Our commitment to contributing valuable insights into the pension sector is evident through our publications this year. Here's a brief overview of our key contributions: §  The Future of Work in Latin America and the Caribbean: How to Move Towards Sustainable Pension Systems for Longer-Lived Societies?, published by the Inter-American Development Bank, with one of our co-founders as the lead author. This flagship publication aims to redefine the narrative around aging and pensions in Latin American societies, transforming it into a landscape of opportunities. §  Addressing the duration puzzle and retirement income risk of defined contribution pension plans, featured in the prestigious Journal of Banking & Finance, this paper was co-authored by one of our co-founders. The paper introduces a novel metric to align pension fund performance with long-term retirement goals and introduce target-income strategies that minimize retirement income risk, offering superior outcomes compared to typical target-date funds, as can account for and manage unexpected changes in average longevity. §  Is my pension fund more expensive? Estimating equivalent assets-based and contribution-based management fees, published by the Journal of Business Research and co-authored by a Nuovalo co-founder. This article presents a groundbreaking closed formula for calculating fees proportional to contributions, offering a new perspective on the equivalence between contribution-based and AUM-based fee systems. §  In addition to these, our co-founders have authored or co-authored several other thought-provoking publications, including: o   'How do classical music and the future of pensions connect?' (link) o   'Lifetime income: an opportunity for innovation in Latin America and the Caribbean' (link) o   'Pensions: What can we learn from countries with more advanced aging processes?' (link) These works underscore our enduring commitment to pioneering research in pensions and longevity. Join Our Journey! The world of pension management is constantly evolving. At Nuovalo, we are proud to lead the charge in pursuit of better outcomes for people. Our experiences in 2023 have only strengthened our resolve to drive innovation and share our knowledge globally. If you are interested in learning more about our projects or have an interest in implementing low-cost noninsured risk-pooled solutions for lifetime income within defined contribution plans or individual retirement accounts, please contact us. Let's collaborate to shape the future of retirement security.

Nuovalo se complace en haber contribuido al próximo libro editado por David Tuesta y Parul Seth Khanna de pinBox Solutions, que compila una colección integral de propuestas de reforma de pensiones en América Latina. El libro se presentará en Washington DC durante la Semana de Pensiones (del 20 al 22 de junio de 2023) organizada por el Banco Interamericano de Desarrollo. Si bien cada país es único, enfrentan muchos desafíos similares, incluida la alta informalidad del mercado laboral, las presiones demográficas y otros factores ambientales, como la pandemia de la Covid-19. Estos desafíos resaltan una serie de debilidades estructurales dentro de los sistemas de pensiones de la región y subrayan la urgencia de abordarlos. El libro reúne el análisis reflexivo de varios expertos en pensiones sobre enfoques innovadores para mejorar la sostenibilidad de los sistemas de pensiones de la región. Algunas de estas propuestas de reforma abordan cuestiones del lado de la oferta y del lado de la demanda en la fase laboral del ciclo de vida, que hasta la fecha han limitado la capacidad de las personas para crear fondos de ahorro de pensión adecuados, particularmente en el sector informal de la población. Otras propuestas examinan formas de mejorar los pagos de pensiones después de la jubilación. La compilación de 25 capítulos sirve como base para las recomendaciones de reforma de pensiones para los responsables de las políticas pensionales de América Latina y el Caribe. El libro también desarrolla un conjunto de diez principios de política para fortalecer la suficiencia de los ingresos de jubilación dentro de los sistemas de pensiones de DC, y aumentar el nivel de confianza entre la población de que los administradores de ahorros y pagos de pensión tienen en mente sus mejores intereses. Los cofundadores de Nuovalo, Manuel García-Huitrón y Richard Fullmer, contribuyeron al libro escribiendo el capítulo sobre el riesgo compartido de longevidad como una herramienta para aumentar el nivel esperado de ingresos de jubilación y, al mismo tiempo, garantizar la sostenibilidad del sistema para las generaciones actuales y futuras.

Nuovalo is pleased to have contributed to the forthcoming book edited by David Tuesta and Parul Seth Khanna from pinBox Solutions that compiles a comprehensive collection of pension reform proposals in Latin America. The book will be presented in Washington DC during Pensions Week (June 20–22, 2023) hosted by the Inter-American Development Bank. While each country is unique, they face similar challenges, including high labor market informality, demographic pressures, and other environmental factors such as the Covid-19 pandemic. These challenges highlight a number of structural weaknesses within the region’s pension systems and underscore the urgency to address them. The book assembles thoughtful analysis from a cadre of pension experts on innovative approaches to improve the sustainability of the area’s national retirement systems. Some of these reform proposals address supply-side and demand-side issues in the working phase of the lifecycle that, to date, have limited the ability of people to create adequate pension savings pots, particularly in the informal sector of the population. Other proposals examine ways to improve pension payouts after retirement. The 25-chapter compilation serves as a foundation for pension reform recommendations for Latin American and the Caribbean policy makers. It also develops a set of ten policy principles to strengthen retirement income adequacy within DC pension plans and to increase the level of trust among the population that pension providers have their best interest in mind. Nuovalo co-founders Manuel García-Huitrón and Richard Fullmer contributed to the book by writing the chapter on longevity risk sharing as a tool for increasing the expected level of retirement income while simultaneously ensuring the system's sustainability for current and future generations.

The Society of Actuaries Research Institute and the Canadian Institute of Actuaries have jointly published a new research report titled Benefit at Risk for Lifetime Pension Pools. Lifetime pension pools are longevity risk sharing arrangements that can be used within defined contribution (DC) plans, individual retirement accounts (IRAs), and similar retirement savings accounts. "Several modern retirement arrangements, including lifetime pension pools, allow retirees to convert a single premium into income for life that varies with investment and mortality experience. To assess how much risk members bear in these arrangements, this report introduces a collection of new risk measures — called benefit at risk, or BaR for short — to be used in the context of varying benefits." ~Jean-François Bégin and Barbara Sanders Nuovalo is proud to have been selected as a reviewer of this important research. Contact us for a demonstration of lifetime pension pools and how they deliver higher income streams than annuities or any type of non-pooled investment. Different designs offer different features, the key features include: Assured lifetime income Longevity credits that grow over time (on top of investment returns) Low cost Flexible investment choice The ability to change investments when and as desired Flexible payout options No third-party insurer No guarantor counterparty risk No expensive guarantee charges Payouts are always fully funded Actuarially fair to all investors at all times Ability to incorporate payout smoothing Assets remain in investor's name, allowing financial advisors to continue advising on them Nuovalo has many years of experience developing stochastic methods for projecting longevity risk pool payouts. We offer these and more as part of our technology platform for the design and administration of longevity risk pools.

Artificial intelligence has come a long way... but at least in some areas, it still has a long way to go. We asked ChatGPT to "explain modern tontines" and got this response. "A modern tontine is a financial product that is similar to a traditional tontine, but with some key differences. A traditional tontine is a type of investment or savings plan in which a group of individuals pool their money together and, as members of the group die, their shares are distributed among the remaining members. The last surviving member of the group receives the entirety of the remaining funds. Modern tontines, on the other hand, are typically structured as a type of annuity or life insurance policy, in which a group of individuals make regular payments into a pool of funds. As members of the group die, the remaining members continue to receive payouts from the pool, but the payouts typically decrease over time. The key difference between a traditional tontine and a modern tontine is that in a modern tontine, the payouts continue for the lifetime of the remaining members, whereas in a traditional tontine, the payouts end when the last surviving member dies." Unfortunately, this answer contains a few inaccuracies. But before we can analyze them, we first need to understand that ChatGPT defines a traditional tontine as a collective savings or investment scheme in which there is a last surviving member. We could nit-pick over that definition, but let's be charitable and go with it for the purpose of this article. Instead, let us focus on its explanation of a modern tontine: "...are typically structured as a type of annuity or life insurance policy" This statement makes us wonder whether ChatGPT thinks modern tontines include the 19th century product known as tontine insurance. That's not very modern, and in fact it was these old-style tontines that gave tontines such a bad name nearly 120 years ago. Fact : Modern tontines can be structured as insurance offerings or as investment funds or trusts or managed accounts or any number of ways. Because a pure tontine neither transfers risk nor guarantees anything, no insurance company is necessary. "...in which a group of individuals make regular payments into a pool of funds..." There are two issues with this line. Fact : There is no requirement that individuals must make regular payments (contributions) into a modern tontine. They could if they wish, but only a single investment contribution is necessary. Fact : A modern tontine does not have to be structured as a "pool of funds." It could be organized as a single investment fund, as multiple funds, as individually managed accounts, as brokerage accounts, or as trusts. It is possible that each member could have a different investment portfolio. "...the payouts typically decrease over time" What? No. Fact : Although a modern tontine could be designed to deliver decreasing payouts, it is much more common to think of payouts that typically increase over time to offset inflation. "The key difference between a traditional tontine and a modern tontine is that in a modern tontine, the payouts continue for the lifetime of the remaining members, whereas in a traditional tontine, the payouts end when the last surviving member dies." This statement about "the key difference" is very confusing — are these two statements even different? Fact : Modern tontines can be open-ended, running in perpetuity such that there is never a last member because new generations of people can continually enter the pool to replace those who die. Fact : Modern tontines can have payouts that continue for the lifetime of each member. Note, however, that other types of payouts are also possible in a modern tontine. For example, payouts could occur steadily over a fixed horizon (e.g., 10 or 20 years) or could only at the very end of a fixed horizon. To improve its understanding, perhaps ChatGPT should read our article titled Tontines 101 or any of the other articles in our Insights library.

This week Mercer launched the 2022 edition of the Mercer-CFA Global Pensions Index (MCGPI) with a series of events worldwide, with an impressive lineup including Martine Ferland and David Knox from Mercer, Mathias Cormann from the OECD, and Gustavo Demarco from the World Bank (replay video here). Nuovalo´s Chief of Global Strategy and Operations, Manuel Garcia-Huitron, is a member of the international academic council of the MCGPI project, set up by the Monash Centre for Financial Studies. The report, now in its 14th year, is a tour de force for anyone wanting to learn more about pension systems around the world. This year´s report features a special chapter titled “Converting defined contribution benefits into better outcomes for retirees.” The chapter offers a dive into the global decumulation challenge in pension systems. It highlights five desirable features of a decumulation solution: stability, sustainability, flexibility, bequest, and transparency. No single product, by itself, is able to fully deliver each of these elements and attempts to do so come at the risk of high cost and high complexity. Enter one of the most well-known principles in the financial economists´ toolbox: use optimized instruments for each objective and then find the best allocation to these instruments for each investor. In other words, a portfolio of products tailored to each retiree’s needs. Fortunately, a powerful new tool is now becoming available for use in the portfolio toolbox: Longevity risk sharing, which helps address retiree goals in a new and very cost-efficient way. The special chapter is also timely, as the need for innovations in the decumulation space is urgent in the face of increasing longevity and a complex economic scenario for traditional decumulation products. Nuovalo believes that the power of longevity risk sharing is a vitally important consideration for retirees and their financial advisors, and we are leading the global development of a new generation of longevity risk-sharing solutions. Learn more by contacting us.

We were excited to read another fantastic book from Professor Moshe Arye Milevsky. Like all of his books, this one is highly recommended. How To Build a Modern Tontine describes in detail how to model a simple modern tontine arrangement. It begins convincingly by exploring why modern tontines make sense and why their time is now. After a brief review of the fundamental financial and actuarial principles, the book then dives into a coding example using the R programming language of a simple tontine simulation model and a discussion of how various parameters affect the results. It then discusses the tradeoffs (and in some cases, the perils!) of introducing various types of options into the design. And like any good professor, he provides a list of "Test Yourself" questions throughout, followed later by the solutions. The book also highlights several implementation challenges, such as regulatory hurdles and operational complexities. Consider this quote, for example: “For most of the prior chapters, the given R-script has assumed an initial time-zero pool size of GL0, with each member contributing and investing exactly f0 dollars, and each participant assumed to be precisely of age x. These assumptions have been extremely convenient for the modeling and simulation projections, but in practice are highly unrealistic. … So, if I have convinced you that this mixing cohorts is economically complicated, requires a complete re-write of the R-script and must be done with utmost caution that was exactly my intention. More to the point, what I have just described goes beyond the scope of this (free) book. But the computational labour involved isn’t insurmountable, and the theory itself has been formulated by many of the researchers I highlighted in the literature review of Chap. 1. It can be done, but not here and not now.” Solving these real-world regulatory and operational issues is the reason that Nuovalo exists! Our LifePool℠ platform handles all the computational labour for you, here and now. Nuovalo is honored that our CEO, Richard Fullmer, and our advisor/co-author, Michael Sabin, were listed in the book by professor Milevsky in the section titled "Tontine Literature: What (and Who) Else to Read." How To Build a Modern Tontine is a wonderfully insightful text, and will be especially useful to those who want to model how tontines work under simplifying assumptions and to understand the basic tradeoffs of various design decisions. But to fully design, build, and operate one in practice requires highly specialized practical expertise. For this, partner with the experts at Nuovalo.

Last month our CEO Richard Fullmer was interviewed by David Tuesta from pinBox Solutions Latin America - Innovando en Pensiones. In the video below Richard gives deeper insights in our three main business lines: Research, Institutional Consulting, and a B2B Software-as-a-Service (SaaS). To learn how asset managers can incorporate risk pooling into their systems and combat pension inequality, watch the video below.

Nuovalo was pleased to participate in the 18th International Conference on Pension Insurance and Savings held in Rabat, Morocco from 9—10 June 2022. The conference was organized in partnership with Paris School of Economics (PSE), Euro-Mediterranean Economists Association (EMEA), Nova University, and Singapore Management University, with assistance from approximately 100 OECD delegates from countries all over the world. The conference attracts highly scientific research contributions, with presentations in French and English that are followed by periods of debate. The purpose is to invite critical thinking and to push forward the research agenda in each of the major topics of interest. Our CEO, Richard Fullmer, chaired the session on Pension Financing, during which he presented pension reform research in collaboration with Olga Fuentes (Superintendencia de Pensiones de Chile), Manuel García-Huitrón (Nuovalo), and Nuova Longevità Research. Other presenters in the session included Maria Mercedes Claramunt Bielsa (University of Barcelona) and Luís Teles Morais (Universidade NOVA de Lisboa, Portugal). The conference also included presenters from Arizona State University, Bank Al-Maghrib, Caisse Nationale de Sécurité Sociale de Maroc (CNSS), Central Bank of Chile, Escola Brasileira de Administração Pública e de Empresas, European Commission Joint Research Centre Ispra, Euro-Mediterranean Economists Association, Georgetown University, Hitotsubashi University, International Monetary Fund, Leiden University (Netspar), Nova IMS, Singapore Management University, Université Cadi Ayyad, Université Catholique de Louvain, Université Mohammed VI Polytechnique, and Université Paris Dauphine, and Vienna University of Economics and Business. We thank the conference hosts in the beautiful coastal city of Rabat along with the dozens others in the greater Euro-Mediterranean area and beyond who made this conference possible.

Last month our Chief of Global Strategy and Operations Manuel Garcia Huitron was interviewed by David Tuesta from pinBox Solutions Latin America - Innovando en Pensiones. Manuel focused on the pension challenges in the Latin American region. Although Chile is usually thought of as representative of the region, he said there is a lot of heterogeneity in pension design. In his view, pensions in Latin America are either low (especially in low coverage individual DC schemes) or unsustainable (especially in high coverage PAYG-DB schemes), leading to growing fiscal and social grievances in the region. Manuel also addressed the pensions gender gap in Latin America. On average, the gap is 20% in the region (see this publication), which is slightly lower than the 26% average gap reported by the OECD for its members (see this publication). In the last part of the interview, Manuel talks about the main obstacles to improving pension systems in Latin America. These obstacles include: - Low and irregular contributions due to the informality of the labor market. - Accelerated aging (both a declining birth rate and increasing life expectancy in retirement) - Lower expected returns in the future - Vulnerability to so-called conversion or interest rate risk in retirement - Lack of lifetime income solutions Retirement plan design is important. For instance, plan design can amplify, neutralize or reduce gender gaps. We founded Nuovalo as a public benefit company because we care about social issues like the gender gap in retirement savings. We are committed to developing more equitable, efficient, and truly sustainable retirement solutions. If you want to know more, please watch the video below.

With the decline in defined benefit plans and growth of defined contribution retirement plans around the world, workers increasingly face the daunting task of managing the drawdown of their retirement plan assets during retirement. Many options have been developed to help retirement plan participants achieve good outcomes in the accumulation phase, yet employers, financial service providers, and policymakers can do more to assist them in the decumulation phase. Richard Fullmer of Nuovalo and John Turner of the Pension Policy Center write that robo tontines, a longevity risk pooling solution that would be provided by robo advisors, represent a natural evolution in the retirement income market for both supply and demand reasons. Robo advisors are skilled in developing and managing financial products (supply), and they have clients who need help with the drawdown phase of their retirement investments (demand). Read the full article at the RetireSecure blog of the University of Pennsylvania's Wharton Pension Research Council.