IMF highlights government and pension fund exposure to longevity risk, recommends hedging

ORIGINAL PUBLICATION HERE

The International Monetary Fund has published a chapter of its Global Financial Stability Report which discusses ‘The Financial Impacts of Longevity Risk’. In it they warns that the U.S. and other governments need to acknowledge the size of the longevity risks they are facing, put in place mechanisms for improved risk sharing between governments, private sector pension sponsors and individuals, provide better information on longevity risks and promote the growth of markets for the transfer of longevity risks.