Recreating Sustainable Retirement: Resilience, Solvency, and Tail Risk

The financial crisis and the ensuing Great Recession alerted those seeking to protect old-age security, about the extreme risks confronting the financial and political institutions comprising our retirement system. The workforce of today and tomorrow must count on longer lives and deferred retirement, while at the same time it is taking on increased responsibility for managing retirement risk. This volume explores new ways to think about, manage, and finance longevity risk, capital market risk, model risk, and regulatory risk. This volume offers an in-depth analysis of the 'black swans' that threaten private and public pensions around the world. Capital market shocks, surprises to longevity, regulatory/political risk, and errors in modelling, will all have profound consequences for stakeholders ranging from pension plan participants, plan sponsors, policymakers, and those who seek to make retirement more resistant. This book analyzes such challenges to retirement sustainability, and it explores ways to better manage and finance them. Insights provided help build retirement systems capable of withstanding what the future will bring. Contributors to this volume - Olivia S. Mitchell, International Foundation of Employee Benefit Plans Professor of Insurance/Risk Management and Business Economics/Public Policy, the Wharton School, the University of Pennsylvania. P. Brett Hammond is Managing Director at MSCI Raimond Maurer, Chair of Investment, Portfolio Management and Pension Finance at the Finance Department of the Goethe University Frankfurt Enrico Biffis, Associate Professor of Actuarial Science at Imperial College Business School Robert Kosowski, Associate Professor of Finance at the Imperial College Business School, Imperial College London Jim Moore, Managing Director in the Newport Beach PIMCO Niels Pederson, Senior Vice President in the client analytics group in the Newport Beach PIMCO Marlena Lee, Vice President on Dimensional Fund Advisors' Research team Andrew Cairns, Professor of Financial Mathematics at Heriot-Watt University Guy Coughlan, Pacific Global Advisors Michael Sherris, Professor of Actuarial Studies at the Australian School of Business Qiming Zhou, Honours student in the School of Risk and Actuarial Studies at the University of New South Wales Richard MacMinn, holder of the Edmondson-Miller Chair in Insurance and Financial Services at Illinois State University Patrick Brockett, Memorial Chair in Risk Management and Insurance at McCombs School of Business of , University of Texas Jennifer Wang, Chair of the Risk Management and Insurance Department at National Chengchi University in Taiwan Yijia Lin, Assistant Professor of Finance at the University of Nebraska Ruilin Tian, Assistant Professor of Finance in the College of Business at North Dakota State University E. Philip Davis, Senior Research Fellow, NIESR Stefan Lundberg, Head of Innovation at Philip Davis Risk Management Ruben Laros, All Pensions Group Laura Rebel, risk manager at Cardano Tim Hodgson, senior investment consultant with Towers Watson Amy R. Kessler, Senior Vice President and head of Longevity Reinsurance, Prudential Retirement Geoff Bauer, Associate in Mercer's Financial Strategy Group Gordon Fletcher, Principal and actuary in Mercer's Financial Strategy Group Julien Halfon, Principal in London's Mercer Financial Strategy Group Stacy Scapino, partner and the Global Leader for Mercer's Investments Multinational Consulting activities