文档介绍：Designing annuity products for consumers needs
Presented by
Mike Wadsworth Partner, Watson Wyatt
mike.******@eu.
May 2003
Agenda
Options for generating lifetime e
Consumer needs
Investing for life
Managing survival
A new model
"I don't want to achieve immortality through my work - I want to achieve it by not dying"
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 mission
as reported Sunday Times, 25 June 2000
Funeral firm hit by 29% profit fall
Not enough people are dying in the US, according to Service Corporation International, the world's largest funeral pany
Times, 2 October 1999
Scale of opportunities People over 65
Source: US Bureau of the Census
Annuity versus bond yield
e taken monthly in advance; interest rate 5% pa
Annuity e broken down into capital element and the balance (ie interest element)
Options for retirement e
100%
Pensioner Investment Guarantees
Pensioner Survival Guarantees
Traditional Annuity
Lump Sum
?
© Watson Wyatt Partners 2000
0%
0%
Traditional annuities Some important questions
How much do the guarantees cost?
How valuable are they to customers?
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 design The Pensioner
Choice (investment)
Flexibility (e)
Protection (survival)
Communication (trade offs)
Fail safe