I wonder if there are any death insurance companies, where you give them your retirement savings, and when you retire they pay you money continuously until you die. That way, they can pay you extra to take into account that you might not live that long.
Yes; they are called annuities (well, some types of annuities work this way).
Not precisely tontines. For variable annuities, your return depends much more on the market (highly unpredictable) than on the deaths of other members (highly predictable, in aggregate). For fixed annuities, of course, your return is fixed.
Yes; they are called annuities (well, some types of annuities work this way).
Wait annuities are tontines? Cool.
Not precisely tontines. For variable annuities, your return depends much more on the market (highly unpredictable) than on the deaths of other members (highly predictable, in aggregate). For fixed annuities, of course, your return is fixed.