A pooled annuity fund provides a regular income to its participants. So far as we are aware, the literature on pooled annuity funds has focused on payments to a single life. In practice, joint life annuities, which provide a regular payment to a couple until both have died, are also popular. This is attractive as a surviving spouse can continue to receive an income, which would not happen under a single life payment. Here how to provide a joint life income from a pooled annuity fund is detailed. This involves the calculation of the longevity credit appropriate for a joint life. It is also shown that this joint life income can not be replicated using two single life incomes.The method proposed means that pooled annuity funds can offer a range of income benefits to their participants, which should increase their attractiveness.
|Commissioning body||Institute and Faculty of Actuaries|
|Number of pages||18|
|Publication status||Published - 24 Jan 2023|