Implementing a menu of options in a decumulation-only CDC scheme

Decumulation-only CDC schemes, which pool longevity risk only, can offer a menu of options to new retirees. For example, a joint life income, which pays an income to a retiree’s partner upon death, can be offered instead of a single life option. Similarly, a minimum income guarantee could be offered. Earlier work in the research programme showed how a bequest upon death could be offered. In the studied scheme, longevity risk is shared by allocating the funds of those who have died among the surviving retirees. In this webinar, we show how to calculate the allocation to provide a joint life income. Some related issues and solutions are also discussed. Our recent results on the provision of a minimum income guarantee in these schemes are also outlined.