Nuova Longevità Research is a pension and retirement consultancy.
We specialize in longevity risk, pensions (whether defined-benefit or defined-contribution), tontines, and tontine-like designs.
Our latest research explores and expands the boundaries of fair tontine design in introducing the concept of individual tontine accounts.
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NewS & Events
CFA Institute Research Foundation
We are pleased to announce the publication of Richard Fullmer's new research brief Tontines: A Practitioner’s Guide to Mortality-Pooled Investments, funded by the CFA Institute Research Foundation.
17th International Conference on Pension, Insurance and Saving
Paris-Dauphine University, Paris, France
Nuova Longevità is pleased to accept an invitation to present our research at the prestigious International Pension Workshop on May 27-28, 2019. We will be in Brussels on May 23-24 for the World Pension Forum, followed by Paris the entire week of May 27-31. Please reach out if you would like to meet.
Canada Joins the Tontine Movement!
March 19, 2019. The Canadian government has announced several proposals in its 2019 budget to strengthen retirement security. One allows for advanced life deferred annuities. Another allows for offering "variable payment life annuities" (VPLAs) to members of a PRPP or defined contribution RPP. VPLA payments would vary based on investment performance and the mortality experience of VPLA annuitants. That, folks, is a tontine! Great news for Canadians and for Nuova Longevità, the preeminent tontine design consultancy.
World Finance Conference
Nuova Longevità will be in Santiago, Chile during the week of July 22-26, 2019 to attend the World Finance Conference, where we will present our research paper, a collaboration with Michael Sabin, on Individual Tontine Accounts. It is exciting to see such an interest in sound, innovative solutions to the pensions problem coming from pension plans and pension regulators in Chile and other South American countries. Please contact us if you would like to meet in Santiago.
International Longevity Risk and Capital Markets Solutions Conference
Nuova Longevità will be at the 15th International Longevity Risk and Capital Markets Solutions Conference on September 12-13, 2019, hosted by the Pensions Institute and Cass Business School, to discuss advances in the study of fair tontine design and the innovative idea of individual tontine brokerage accounts.
World Pension Summit
The Hague, Netherlands
Nuova Longevità will be in The Hague during the week of October 21-25, 2019 to meet with clients and partners. We will also be speaking on the subject of innovation in tontine pension design at the World Pension Summit.
Pension Research Council
Nuova Longevità is proud to have accepted an invitation by the Pension Research Council of The Wharton School of the University of Pennsylvania to participate in their May, 2020 research symposium on the subject of "Public/Private Partnerships for Longevity Risk Management." Papers will be published in the council's refereed book series by the Oxford University Press.
Tontines: A Practitioner’s Guide to Mortality-Pooled Investments
Richard K. Fullmer
Tontines offer a unique value proposition that represents a new, attractive alternative for the global retirement challenge. The study of fair tontine design is a specialty all its own—one that has emerged only recently. This publication, funded by the CFA Institute Research Foundation and written primarily for investment practitioners, presents new insights on a modern approach to a centuries-old product.
Tontine Bond Ladders
Richard K. Fullmer and Michael J. Sabin
Tontines are useful vehicles for providing retirement income. Their payouts, however, will necessarily vary as a function of investment returns and the mortality experience of the membership pool. Retirees who place a high value on income stability will desire to minimize the variability of these payouts. This can be accomplished via a large membership pool to minimize the effect of mortality experience volatility and by using immunizing cash-flow matching techniques to minimize the effect of investment volatility. A structured bond ladder can achieve this quite effectively.
Individual Tontine Accounts
Richard K. Fullmer and Michael J. Sabin
An individual tontine account (ITA) is similar to a conventional investment brokerage account, but with the added feature of mortality pooling through participation in an open-ended fair tontine. In showing them to be fair to all participants, we envision ITAs as complementary to individual retirement accounts (IRAs), allowing retirees to derive extra income from savings without taking additional investment risk and to obtain lifetime income at a lower cost than with insurance products. ITAs represent an efficient new solution in addressing retirement needs and may help address the “annuity puzzle” by providing a more transparent, lower-cost alternative to insurance-based products.