惠悦国际-定制年金产品咨询报告zap.pptx

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1、W W W.W A T S O N W Y A T T.C O MDesigning annuity products for consumers needsPresented byMike WadsworthPartner,Watson WAgendal Options for generating lifetime incomel Consumer needsl Investing for lifel Managing survivall A new modelI dont want to achieve immortality through my work-I want to achi

2、eve it by not dyingWoody AllenPeople will soon live twice as long as today,and have the potential to live for 1200 yearsJohn Harris,ScientistMember of UK Human Genetics Commissionas reported Sunday Times,25 June 2000 Funeral firm hit by 29%profit fallNot enough people are dying in the US,according t

3、o Service Corporation International,the worlds largest funeral services companyTimes,2 October 1999Scale of opportunitiesPeople over 65Source:US Bureau of the CensusAnnuity versus bond yieldIncome taken monthly in advance;interest rate 5%paAnnuity income broken down into capital element and the bala

4、nce(ie interest element)Options for retirement income100%Pensioner Investment Guarantees PensionerSurvivalGuaranteesTraditional AnnuityLumpSum?Watson Wyatt Partners 20000%0%Traditional annuitiesSome important questionsl How much do the guarantees cost?l How valuable are they to customers?early in re

5、tirement/later in retirement?according to other assets?l How will lifestyles and needs change in retirement?l Will customers change their minds over time?Key issues for designThe Pensionerl Choice(investment)l Flexibility(income)l Protection(survival)l Communication(trade offs)l Fail safe A lifetime

6、 asset allocation modelTraditionalEither lump sumOr annuityRetireRetireOptimum return(equities?)Optimum return(equities?)CashBonds Bonds Watson Wyatt Partners 2000A lifetime asset allocation modelProposedOptimum return(equities?)Optimum return(equities?)BondsRetire Watson Wyatt Partners 2000Effect o

7、f investment growth onsupportable income-malesBase income supportable calculated at 5%.Income multiple=income supportable assuming extra investment return resulting from equity investment of 1,2,3,4 or 5%pa after charges,divided by base income.Mortality as previously Watson Wyatt Partners 2000Planni

8、ng retirement incomel The consumer problem is.How long will I live?l Lifespan is a distribution not an expectationDistribution of deathsRetirement at age 60Mortality:PMA92/PFA92 Year of use 2001 Watson Wyatt Partners 2000Distribution of deaths by age nowAge 75 now Watson Wyatt Partners 2000Mortality

9、:PMA92/PFA92 Year of use 2001Distribution of deaths by age nowAge 90 now Watson Wyatt Partners 2000Mortality:PMA92/PFA92 Year of use 2001Standard deviation of deaths,asa proportion of life expectancyMortality:PMA92/PFA92 Year of use 2001 Watson Wyatt Partners 2000Method of calculationNon-annuitised

10、fundIncome each year defined as:Fund value/annuity factorAnnuity factor calculated at assumed investment return of 0%or 7%pa(excluding expenses)Investment return achieved equal to 7%pa(excluding expenses)Investment return assumed:(excl expenses)Investment return achieved:7%pa(excl expenses)Mortality:PMA92 Year of use 2001Initial fund 100,000 Male aged 60 at outset Watson Wyatt Partners 2000Progression of income:spreading fund over future life expectation