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Collective Defined Contribution
Collective Defined Contribution pension schemes (CDCs) enable savers to pool their money into a single fund to share investment risk and longevity risk. Such schemes became popular in the Netherlands in the early 2000s. CDCs tend to have lower operating costs than smaller individual schemes. The CDC fund pays a monthly or annual pension income. Pension incomes vary depending on the funding level of the CDC. Advantages Following a lengthy public consultation involving 70 contributors from the pension and insurance industry around the world, the United Kingdom Department for Work and Pensions concluded that CDCs offer the following advantages for consumers: * They "provide savings and income in retirement option within one package that is potentially attractive to people who are uncomfortable making complex financial decisions at the point of retirement". * They "enable the sharing of longevity risk between members, therefore providing each individual member with an element of longe ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Longevity Risk
A longevity risk is any potential risk attached to the increasing life expectancy of pensioners and policy holders, which can eventually result in higher pay-out ratios than expected for many pension funds and insurance companies. One important risk to individuals who are spending down savings is that they will live longer than expected, and thus exhaust their savings, dying in poverty or burdening relatives. This is also referred to as "outliving one's savings" or "outliving one's assets". Individuals Individuals often underestimate longevity risk. In the United States, most retirees do not expect to live past 85, but this is in fact the median conditional life expectancy for men at 65 (half of 65-year-old men will live to 85 or older, and more women will). Low interest rates and declining returns exacerbating longevity risk The collapse in returns on government bonds is taking place against the backdrop of a protracted fall in returns for other core assets such as blue ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Department For Work And Pensions
, type = Department , seal = , logo = Department for Work and Pensions logo.svg , logo_width = 166px , formed = , preceding1 = , jurisdiction = Government of the United Kingdom , headquarters = Caxton House7th Floor6–12 Tothill StreetLondonSW1H 9NA , employees = 96,011 (as of July 2021) , budget = £176.3 billion (Resource AME),£6.3 billion (Resource DEL),£0.3 billion (Capital DEL),£2.3 billion (Non-Budget Expenditure)Estimated for year ending 31 March 2017 , minister1_name = Mel Stride , minister1_pfo = Secretary of State for Work and Pensions , chief1_name = Peter Schofield , chief1_position = Permanent Secretary , chief2_name = , chief2_position = , chief3_name = , chief3_position = , chief4_name = , chief4_position = , chief5_name = , chief5_position = , chief6_name = , chief6_position = , chief7_name = , chief7_position = , chief8_name = , chief8_position = , chief9_name = , chief9_position = , parent_department = , w ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Defined Benefit
Defined benefit (DB) pension plan is a type of pension plan in which an employer/sponsor promises a specified pension payment, lump-sum, or combination thereof on retirement that depends on an employee's earnings history, tenure of service and age, rather than depending directly on individual investment returns. Traditionally, many governmental and public entities, as well as a large number of corporations, provide defined benefit plans, sometimes as a means of compensating workers in lieu of increased pay.Lemke and Lins, ''ERISA for Money Managers'', §1:1 (Thomson West, 2013). A defined benefit plan is 'defined' in the sense that the benefit formula is defined and known in advance. Conversely, for a "defined contribution retirement saving plan," the formula for computing the employer's and employee's contributions is defined and known in advance, but the benefit to be paid out is not known in advance. In the United States, specifies a defined benefit plan to be any pension plan ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Tontine
A tontine () is an investment linked to a living person which provides an income for as long as that person is alive. Such schemes originated as plans for governments to raise capital in the 17th century and became relatively widespread in the 18th and 19th centuries. Tontines enable subscribers to share the risk of living a long life by combining features of a group annuity with a kind of mortality lottery. Each subscriber pays a sum into a trust and thereafter receives a periodical payout. As members die, their payout entitlements devolve to the other participants, and so the value of each continuing payout increases. On the death of the final member, the trust scheme is usually wound up. Tontines are still common in France. They can be issued by European insurers under the Directive 2002/83/EC of the European Parliament. The Pan-European Pension Regulation passed by the European Commission in 2019 also contains provisions that specifically permit next-generation pension produc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Royal Mail
, kw, Postya Riel, ga, An Post Ríoga , logo = Royal Mail.svg , logo_size = 250px , type = Public limited company , traded_as = , foundation = , founder = Henry VIII , location = London, England, UK , key_people = * Keith Williams (Non-executive Chairman) * Simon Thompson (CEO) , area_served = United Kingdom , industry = Postal services, courier , products = , services = Letter post, parcel service, EMS, delivery, freight forwarding, third-party logistics , revenue = £12.638 billion(2021) , operating_income = £611 million (2021) , net_income = £620 million (2021) , num_employees = 158,592 (2021) , parent = , divisions = * Royal Mail * Parcelforce Worldwide , subsid = * General Logistics Systems * eCourier * StoreFeeder * Intersoft Systems & Programming , homepage = , dissolved = , footnotes = International Distributions Services plc (formerly Royal Mail plc), trading as Royal Mail, is a British multinational postal ser ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Target Benefit
A target benefit plan is a type of pension plan that is similar to a defined contribution plan in that it involves fixed contributions, or a fixed range of contributions, which are set independently of a plan's funded position. Benefits are based on affordability projections. Plan members share plan risk through adjustments to their benefits. A key element of the target benefit model is the existence of pre-determined guidelines linking benefits to funds available in the plan. Benefits and contributions are linked in a way that does not exist with traditional defined benefit or defined contribution plans.Target Benefit Plans: The Future of Sustainable Retirement Programs (Aon Hewitt, 2012). Retrieved on October 9, 2012 < ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
