Forced Retirement Risk and Portfolio Choice

In this interim report on forced retirement risk and the link to investment portfolios, Minjoon Lee and his coauthors analyze the latest Canadian data and find that the correlation between stock returns and the chance of involuntary job separation is much stronger during the coronavirus crisis.

The Other Longevity Risk

Pension plan sponsors are aware of one longevity risk in their plans – the risk that plan members live longer than assumed. There are steps that they have taken to mitigate this risk. Pension liabilities have been valued anticipating future increases in longevity, and some longevity exposure has been transferred to insurance companies through annuity purchases or pension “buy-ins”.