From the newsletter of New Zealand Public Finance (NZPF), an article which looks at longevity risk in retirement income from a public finance perspective. The article also comments on the developing roles for actuaries in public finance management.
Retirement is an uncertain phase of life. The risk of not having enough income can loom large for people no longer able or willing to keep earning. The suggestion that the Crown should shoulder more of this risk than it already takes through public pensions is examined from a public finance perspective in this article, first published in the NZPF newsletter .
Actuaries are getting more involved in public finance issues in New Zealand. The “investment approach” is showing its value in welfare policy, and Treasury is giving the Crown balance sheet more attention. Longevity risk in retirement income policy is another area where actuarial insight can add value to a public policy issue.