




版权说明:本文档由用户提供并上传,收益归属内容提供方,若内容存在侵权,请进行举报或认领
文档简介
1、Designing annuity products for consumers needs,Presented by Mike WadsworthPartner, Watson Wyatt May 2003,Agenda,Options for generating lifetime income Consumer needs Investing for life Managing survival A new model,I dont want to achieve immortality through my work - I want to achieve it by not dyin
2、g Woody Allen,People will soon live twice as long as today, and have the potential to live for 1200 years John Harris, Scientist Member of UK Human Genetics Commission as reported Sunday Times, 25 June 2000,Funeral firm hit by 29% profit fall Not enough people are dying in the US, according to Servi
3、ce Corporation International, the worlds largest funeral services company Times, 2 October 1999,Scale of opportunitiesPeople over 65,Source: US Bureau of the Census,Annuity versus bond yield,Income taken monthly in advance; interest rate 5% pa Annuity income broken down into capital element and the
4、balance (ie interest element),Options for retirement income,100%,Pensioner Investment Guarantees,PensionerSurvivalGuarantees,Traditional Annuity,LumpSum,?, Watson Wyatt Partners 2000,0%,0%,Traditional annuitiesSome important questions,How much do the guarantees cost? How valuable are they to custome
5、rs? early in retirement/later in retirement? according to other assets? How will lifestyles and needs change in retirement? Will customers change their minds over time?,Key issues for designThe Pensioner,Choice (investment) Flexibility (income) Protection (survival) Communication (trade offs) Fail s
6、afe,A lifetime asset allocation modelTraditional,Either lump sum,Or annuity,Retire,Retire,Optimum return(equities?),Optimum return(equities?),Cash,Bonds,Bonds, Watson Wyatt Partners 2000,A lifetime asset allocation modelProposed,Optimum return(equities?),Optimum return(equities?),Bonds,Retire, Watso
7、n Wyatt Partners 2000,Effect of investment growth onsupportable income - males,Base income supportable calculated at 5%.Income multiple = income supportable assuming extra investment return resulting from equity investment of 1, 2, 3, 4 or 5% pa after charges, divided by base income. Mortality as pr
8、eviously, Watson Wyatt Partners 2000,Planning retirement income,The consumer problem is . How long will I live? Lifespan is a distribution not an expectation,Distribution of deathsRetirement at age 60,Mortality: PMA92/PFA92 Year of use 2001, Watson Wyatt Partners 2000,Distribution of deaths by age n
9、ow,Age 75 now, Watson Wyatt Partners 2000,Mortality: PMA92/PFA92 Year of use 2001,Distribution of deaths by age now,Age 90 now, Watson Wyatt Partners 2000,Mortality: PMA92/PFA92 Year of use 2001,Standard deviation of deaths, asa proportion of life expectancy,Mortality: PMA92/PFA92 Year of use 2001,
10、Watson Wyatt Partners 2000,Method of calculation Non-annuitised fund Income each year defined as:Fund value / annuity factor Annuity factor calculated at assumed investment return of 0% or 7% pa (excluding expenses) Investment return achieved equal to 7% pa (excluding expenses),Investment return ass
11、umed:,(excl expenses),Investment return achieved: 7% pa (excl expenses), Watson Wyatt Partners 2000,Progression of income:spreading fund over future life expectation,Progression of income - annuitised fund versusnon-annuitised fund, Watson Wyatt Partners 2000,Supplier view of mortality guarantees,Mo
12、rtality improving How fast 1% pa? 2% pa? 3% pa? In future? Scope to review? Guarantees are (too) expensive?,Mortality drift -uncertain future improvements,Both charts show expected distribution of deaths for male aged 60 in 1992, allowing for future improvements. PMA92 represents the more recent est
13、imate,Cross-subsidy operates across either distribution, and longevity protection is largely retained even if mortality is reviewed,Drift in anticipated distribution allowing for newer evidence, Watson Wyatt Partners 2000,Excess survivors -PMA92 compared with PMA80,Cost to annuity provider of not re
14、viewing mortality relates to payments made to those survivors who were not expected to live so long - the red zone, Watson Wyatt Partners 2000,New model,Investment fund + Insurance against survival,Lifetime income model -benefit statement,UnitsUnit PriceValue Start of Year10,00010.00100,000 Annuity
15、Payments(975)(10,000) Survival Bonus2953,000 Effect of Changes in Unit Price4,860 End of Year9,32010.5097,860 Target Incomefor Next Year10,000, Watson Wyatt Partners 2000,Equivalent additional fundgrowth resulting from mortalitycross-subsidy,Mortality: PMA92/PFA92 Calendar Year 2001, Watson Wyatt Pa
16、rtners 2000,Equivalent additional fund growth,M F % pa % pa 754.12.8 8513.18.4 9533.221.2 NB: Partial survival protection possible,Flexible annuity review cycle,Initial max/min income calcd,Annuitant selects income between max and min to next review,Payments deducted according to annuitant requireme
17、nts/survival credits/investment returns added,Fund balance determined at review,Max/min income to next review calcd, Watson Wyatt Partners 2000,Flexible incomeThe corridor,Income levelchosen by the annuitant,annual maximum,annual minimum, Watson Wyatt Partners 2001,Communication of benefitsIncome pr
18、ojections - income takeninitially = income supportable at 7% pa, Watson Wyatt Partners 2000,Income projections - income takeninitially = 1.1 x income supportableat 7% pa, Watson Wyatt Partners 2000,Income projections - income takeninitially = 0.9 x income supportableat 7% pa, Watson Wyatt Partners 2
19、000,Income projections - variable investment model, Watson Wyatt Partners 2000,Fail safe,Default investment strategies, egequities bonds over lifetime Programmed switching to guarantee at high age Programmed switching to guarantee on sustained market fall, eg Japan scenario Voluntary switching NB: M
20、ore features better systems,Annuity developments - unbundling dynamic,More impaired life/enhanced annuities,Other gteed annuities more expensive/less profitable,More equity based annuities,Weaker longevity guarantees, Watson Wyatt Partners 2002,Effect of LTC rider on income,Before LTC claim,After LTC claim,The product is a variable annuity prior to claim, then a fixed LTC annuity after claim, plus a continuing variable annuity (which could convert to a conventional annuity). The level of benefit is ch
温馨提示
- 1. 本站所有资源如无特殊说明,都需要本地电脑安装OFFICE2007和PDF阅读器。图纸软件为CAD,CAXA,PROE,UG,SolidWorks等.压缩文件请下载最新的WinRAR软件解压。
- 2. 本站的文档不包含任何第三方提供的附件图纸等,如果需要附件,请联系上传者。文件的所有权益归上传用户所有。
- 3. 本站RAR压缩包中若带图纸,网页内容里面会有图纸预览,若没有图纸预览就没有图纸。
- 4. 未经权益所有人同意不得将文件中的内容挪作商业或盈利用途。
- 5. 人人文库网仅提供信息存储空间,仅对用户上传内容的表现方式做保护处理,对用户上传分享的文档内容本身不做任何修改或编辑,并不能对任何下载内容负责。
- 6. 下载文件中如有侵权或不适当内容,请与我们联系,我们立即纠正。
- 7. 本站不保证下载资源的准确性、安全性和完整性, 同时也不承担用户因使用这些下载资源对自己和他人造成任何形式的伤害或损失。
最新文档
- 2025届上海市上海交大附中高一化学第二学期期末复习检测试题含解析
- 2025届山东省蓬莱第二中学化学高二下期末学业质量监测试题含解析
- 吉林省舒兰一中2025届化学高一下期末复习检测模拟试题含解析
- 湖北省当阳市第二高级中学2025届高一下化学期末达标检测试题含解析
- 福建泉州市2025年高二下化学期末达标检测试题含解析
- 机耕道路维护管理办法
- 内部成员冲突管理办法
- 杭州学校宿舍管理办法
- 民企职工公寓管理办法
- 家校协同下的心理健康教育实践探索与反思
- 老旧住宅小区综合整治装饰装修工程施工方案
- 小儿肠梗阻护理课件
- 2024-2025学年译林版新七年级英语上册Unit2《Hobbies》单元卷(含答案解析)
- 辽宁省大连市甘井子区2023-2024学年七年级下学期期末生物学试题(原卷版)
- 5国家机构有哪些 第一课时(教学设计)部编版道德与法治六年级上册
- AQ/T 1118-2021 矿山救援培训大纲及考核规范(正式版)
- 2024届甘南市语文八年级第二学期期末联考试题含解析
- 无人机航空测绘与后期制作 课件 第十二课时 现场飞行流程
- 2024年梅州市大埔县重点中学小升初语文入学考试卷含答案
- 2022-2023学年北京市东城区高二(下)期末化学试卷(含解析)
- 防溺水老师培训课件
评论
0/150
提交评论