Uncertainty about length of life, longevity risk, is a growing financial problem for pension funds and
annuity providers. They would like to transfer longevity risk away to institutions better placed to deal with
it. Unfortunately, there is a lack of financial instruments to hedge against this longevity risk, thereby
complicating risk management by pension funds and hindering the expansion of the annuity market.
Consequently, this paper examines the role of government in...
