Annuities for an ageing world

Substantial research attention has been devoted to the pension accumulation process, whereby employees and those advising them work to accumulate funds for retirement. Until recently, less analysis has been devoted to the pension decumulation process – the process by which retirees finance their consumption during retirement. This gap has recently begun to be filled by an active group of researchers examining key aspects of the pension payout market. One of the areas of most interesting investigation has been in the area of annuities, which are financial products intended to cover the risk of retirees outliving their assets. This paper reviews and extends recent research examining the role of annuities in helping finance retirement consumption. We also examine key market and regulatory factors

International Adverse Selection in Life Insurance and Annuities

This paper evaluates the extent of adverse selection in life insurance and annuities in international markets, for both group and individual products. We also compare results with prior analyses of adverse selection in international annuity markets, focusing on the US, the UK, and Japan. Our results help assess the extent to which life insurers can hedge mortality exposure by writing both life insurance and annuities, and they may be used to determine a normal range for adverse selection in international insurance markets.

Annuities for an Ageing World

Substantial research attention has been devoted to the pension accumulation process, whereby employees and those advising them work to accumulate funds for retirement. Until recently, less analysis has been devoted to the pension decumulation process -- the process by which retirees finance their consumption during retirement. This gap has recently begun to be filled by an active group of researchers examining key aspects of the pension payout market. One of the areas of most interesting investigation has been in the area of annuities, which are financial products intended to cover the risk of retirees outliving their assets. This paper reviews and extends recent research examining the role of annuities in helping finance retirement consumption. We also examine key market and regulatory factors.

The impact of artificial intelligence on the current and future practice of clinical cancer genomics.

Artificial intelligence (AI) is one of the most significant fields of development in the current digital age. Rapid advancements have raised speculation as to its potential benefits in a wide range of fields, with healthcare often at the forefront. However, amidst this optimism, apprehension and opposition continue to strongly persist. Oft-cited concerns include the threat of unemployment, harm to the doctor-patient relationship and questions of safety and accuracy. In this article, we review both the current and future medical applications of AI within the sub-speciality of cancer genomics

Bolus insulin dose depends on previous‐day race intensity during 5 days of professional road‐cycle racing in athletes with type 1 diabetes: A prospective observational study

AimsTo assess insulin therapy, macronutrient intake and glycaemia in professional cyclists with type 1 diabetes (T1D) over a 5‐day Union Cycliste Internationale road‐cycle race.Material and methodsIn this prospective observational study, seven professional cyclists with T1D (age 28 ± 4 years, body mass index 20.9 ± 0.9 kg/m2, glycated haemoglobin concentration 56 ± 7 mmol/mol [7.3% ± 0.6%]) were monitored during a five‐stage professional road cycling race. Real‐time continuous glucose monitoring (rtCGM) data, smart insulin pen dose data and macronutrient intake were assessed by means of repeated‐measure one‐way ANOVA and post hoc testing. Associations between exercise physiological markers and rtCGM data, insulin doses and macronutrient intake were assessed via linear regression modelling (P ≤ 0.05).ResultsBolus insulin dose was significantly reduced over the 5‐day period (P = 0.03), while carbohydrate intake (P = 0.24) and basal insulin doses remained unchanged (P = 0.64). A higher mean previous‐day race intensity was associated with a lower mean sensor glucose level (P = 0.03), less time above range level 2 (>13.9 mmol/L [250 mg/dL]; P = 0.05) and lower doses of bolus insulin (P = 0.04) on the subsequent day. No significant associations were found for any other glycaemic range and glycaemic variability (P > 0.05).ConclusionsThis is the first study to demonstrate the influence of previous‐day race intensity on subsequent bolus insulin dose requirements in professional cyclists with T1D. These data may help inform therapeutic strategies to ensure safe exercise performance

Assessing the Impact of Mortality Assumptions on Annuity Valuation: Cross-Country Evidence

Evaluating the money’s worth of annuities requires one to employ an assumed mortality table. In practice, of course, there are many measures of mortality probabilities including cohort, period, annuity and population mortality tables that differ by age and sex. Each of these tends to differ across countries, as well, making it difficult to compare the working of annuity markets internationally. This paper proposes several methods for comparing alternative mortality tables and illustrates their impact on annuity valuation for men and women in the US, the UK, and Australia. Our results indicate that the relatively lower mortality among older Americans who purchase annuities is equivalent to using a discount rate that is 50-100 basis points below the UK rate for compulsory annuitants, or 10-20 basis points lower than the UK rate for voluntary annuitants. Australian mortality rates are notably lighter than those in both the UK and US

International Adverse Selection in Life Insurance and Annuities

This paper evaluates the extent of adverse selection in life insurance and annuities in international markets. We examine the extent of adverse selection in group and individual life insurance. In addition we also compare results with prior analyses of adverse selection in international annuity markets, focusing on the US, UK and Japan. Our results may be used to assess the extent to which life insurers can hedge mortality exposure by writing both life insurance and annuities, and to determine a normal range for adverse selection in international insurance markets

Estimating International Adverse Selection in Annuities

It is well known that purchasers of annuities have lower mortality than the general population. Less widely known is the quantitative extent of this adverse selection and how it varies across countries. This paper proposes and applies several methods for comparing alternative mortality tables and illustrates their impact on annuity valuation for men and women in the US and the UK. Our results indicate that the relatively lower mortality among older Americans who purchase annuities is equivalent to using a discount rate that is 50-100 basis points below the UK rate for compulsory annuitants, or 10-20 basis points lower than the UK rate for voluntary annuitants. We then draw on the mortality experience of over half a billion lives to estimate mortality differentials due to varying degrees of adverse selection controlling for country, gender, and an allowance for mortality improvements. Results show that adverse selection associated with the purchase of individual annuities reduces mortality rates by at least 25% in the international context. We also find that the system of mortality tables used to value Japanese annuities is quite distinct from international norms

Efficacy of carbohydrate supplementation compared to bolus insulin dose reduction around exercise in adults with type 1 diabetes: a retrospective controlled analysis

IntroductionIndividuals with type 1 diabetes try to manage the risk of exercise-induced hypoglycemia by means of pre-exercise/pre-meal bolus insulin dose reductions and/or consuming additional carbohydrates during exercise. Both strategies have proven to be effective in offsetting the occurrence against hypoglycemia, it is unclear as to which one is more beneficial. Consequently, the aim of this study was to assess the efficacy of carbohydrate supplementation in comparison to bolus insulin dose reduction to prevent hypoglycemia during moderate-intensity exercise in individuals with type 1 diabetes.MethodsThis was a retrospective controlled analysis of two independent clinical trials. All participants performed a continuous moderate-intensity cycle ergometer exercise session for ∼45 minutes. Two different therapy management groups and a control group were compared: Group (A) supplemented 15 – 30 g carbohydrates at a glycemic threshold of 7.0 mmol/L during exercise, group (B) reduced their individual bolus insulin dose by 50% with their last meal prior to exercise and group (C) remained as a control.ResultsNo hypoglycemic events occurred in group A, which differed to each four events recorded in groups B (p = 0.02) and C (p = 0.02).ConclusionCarbohydrate supplementation was superior to bolus insulin reductions in the prevention of hypoglycemia during exercise in people with type 1 diabetes

Lifetime Earnings Variability and Retirement Wealth

This paper explores how earnings variability is related to retirement wealth. Past research has demonstrated that the average American household on the verge of retirement would need to save substantially more, in order to preserve consumption flows in old age. While several socioeconomic factors have been examined that might explain such problems, prior studies have not assessed the role of earnings variability over the lifetime as a potential explanation for poor retirement prospects. Thus two workers having identical levels of average lifetime earnings might have had very different patterns of earnings variability over their lifetimes. Such differences could translate into quite different retirement wealth outcomes. This paper evaluates the effect of earnings variability on retirement wealth using information supplied by respondents to the Health and Retirement Study (HRS). This is a rich and nationally representative dataset on Americans on the verge of retirement, with responses linked to administrative records from the Social Security Administration. Our research illuminates the key links between lifetime earnings variability and retirement wealth.