The shortfall in pension funding for retirees is forecast to grow by 5% yearly, rising to $400tn by 2050 from a recorded $70tn in 2015, creating an opportunity for re/insurers to provide risk transfer solutions to close the funding gap, according to a new report by Swiss Re. Using longevity and mortality risk management expertise, insurers can offer customised pension risk transfer solutions and help individuals manage risk, said the report. Data showed the global pension gap would reach 108% of gross domestic product (GDP) in 2050, hitting the India, China and US most severely.
The shortfall in pension funding for retirees is forecast to grow by 5% yearly, rising to $400tn by 2050 from a recorded $70tn in 2015, creating an opportunity for re/insurers to provide risk transfer solutions to close the funding gap, according to a new report by Swiss Re. Using longevity and mortality risk management expertise, insurers can offer customised pension risk transfer solutions and help individuals manage risk, said the report. Data showed the global pension gap would reach 108% of gross domestic product (GDP) in 2050, hitting the US, China and India most severely.