Download or read book Longevity Risk Management, Corporate Finance, and Sustainable Pensions written by Guy Coughlan and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Historically, unexpected improvements in mortality rates have led to large, unanticipated increases in life expectancy, with accompanying increases in the value of defined benefit pension liabilities. As a result, longevity risk needs to be measured and managed alongside the financial risks facing these plans. The emergence of new instruments for hedging longevity risk means that a complete toolkit is now available for managing these plans in a way that is sustainable over the long term. Decisions to hedge or eliminate longevity risk need to be made in a holistic framework. For corporate pension plans this means taking account of the corporate finance perspective, as well as the inter-dependencies between the sponsor and the plan. This paper addresses the importance of measuring and managing longevity risk and presents a holistic framework for sustainable pension plan management that facilitates longevity risk management decision-making.