EUROPEAN PAPERS ON THE NEW WELFARE

Annuities: Private Solution to Longevity Risk

1. Introduction

Demographic trends in many countries are unambiguous: while people are having fewer children, they are living longer than any generation before. The result is irreversible for the foreseeable future: the population is ageing at a rapid pace, both in the developed and developing world. This has dramatic social, cultural, and economic consequences. The insurance industry is one of the key players affected by those changes, as the ageing process directly impacts health care, long-term care, and pension provision.
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