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Japan’s Aging Population Breathes New Life Into a Centuries-Old Investment Idea

WSJ Original article ›
LyrArc Article Gist
Tontine pension products are popular in Japan where longevity has risen to the point where many women are live much longer. To make their pensions last longer for older participants the women pool their investment assets so that the oldest participants do not outlive their savings. As participants die the remainder of the asset pool is divided among the remaining women so that older participants can continue to receive periodic payouts for longer. Annuity products of this type are offered by Japanese insurance companies where contributions are made by Japanese people in their 50's for pension payouts later in life.



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