Can Longevity Bonds Mitigate the Longevity Risk of the Pension Scheme?

Muhammad Irfan Abdul Rahman () and Wee Yeap Lau
Additional contact information
Muhammad Irfan Abdul Rahman: Universiti Malaya

Chapter Chapter 6 in Pension at Stake, 2024, pp 119-153 from Springer

Abstract: Abstract This chapter examines the applicability of longevity bonds in the Malaysian Capital Market. An increase in the life expectancy of individuals raises concern for the annuity market and pension funds in providing a more extended post-retirement benefit. Hence, the pension and insurance industries started to look for an efficient instrument to cross-hedge or transfer the longevity risk. Given the concern for the Malaysian defined benefit pension scheme for public servants, this study examines the feasibility and practicality of introducing the longevity bond to reduce the longevity risk.

Keywords: Longevity bond; Longevity risk; Coupon rate; Special Purpose Vehicle; Malaysian Government; Capital Market; Retirement age; Life expectancy (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-97-2324-9_6

Ordering information: This item can be ordered from
http://www.springer.com/9789819723249

DOI: 10.1007/978-981-97-2324-9_6

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().