Longevity Risk & Pension Fund Sustainability: Secure Long-term Pensions

Introduction:

Longevity Risk & Pension Fund Sustainability equips professionals with the knowledge to address the increasing life expectancy challenge in pension planning. This course focuses on understanding longevity risk, its impact on pension fund sustainability, and strategies for mitigation. Participants will learn to analyze demographic trends, develop actuarial models, and implement sustainable pension policies. This course bridges the gap between traditional pension planning and the realities of extended lifespans, enabling professionals to ensure long-term pension security.

Target Audience:

This course is designed for professionals involved in pension fund management, actuarial science, and policy development, including:

• Pension Fund Managers
• Actuaries
• Risk Managers
• Policy Analysts
• Government Officials
• Financial Advisors
• Consultants
• HR Professionals (Benefits)
• Researchers
• Trustees

Course Objectives:

Upon completion of this Longevity Risk & Pension Fund Sustainability course, participants will be able to:

Understand the concept and impact of longevity risk on pension funds.

• Analyze how increasing life expectancy affects pension liabilities and funding.

Analyze demographic trends and mortality data to assess longevity risk.

• Interpret mortality tables and longevity indices for accurate risk assessment.

Develop and apply actuarial models for longevity risk projections.

• Implement techniques for projecting future longevity trends and their impact.

Implement strategies for mitigating longevity risk in pension fund management.

• Explore hedging instruments, longevity swaps, and other risk transfer mechanisms.

Understand the role of longevity risk in pension fund sustainability.

• Evaluate the long-term financial implications of longevity risk on pension schemes.

Evaluate the impact of longevity risk on different pension scheme designs.

• Compare how defined benefit and defined contribution plans are affected by longevity.

Implement techniques for stress testing and scenario analysis for longevity risk.

• Develop and analyze scenarios to assess pension fund resilience to longevity changes.

Understand the role of public policy and regulatory frameworks in addressing longevity risk.

• Analyze government policies and regulations aimed at managing longevity risk.

Communicate the implications of longevity risk to stakeholders effectively.

• Develop strategies for clear and concise communication with plan members and trustees.

Develop sustainable pension fund strategies that account for increasing life expectancy.

• Implement long-term planning techniques to ensure pension fund solvency and stability.

DURATION

10 Days

COURSE CONTENT

Module 1: Introduction to Longevity Risk and Pension Fund Sustainability

• Overview of longevity risk and its increasing significance.
• Understanding the relationship between longevity, pension liabilities, and fund sustainability.
• Introduction to key demographic and actuarial concepts.
• Setting the stage for developing sustainable pension strategies.

Module 2: Demographics and Mortality Trends

• Analyzing global and regional demographic trends.
• Understanding factors influencing mortality rates and life expectancy.
• Interpreting mortality tables and longevity indices.
• Analyzing historical and projected mortality data.

Module 3: Actuarial Modeling of Longevity Risk

• Developing and applying actuarial models for longevity projections.
• Understanding the role of mortality assumptions and sensitivity analysis.
• Implementing stochastic mortality models.
• Analyzing the impact of model uncertainty.

Module 4: Longevity Risk Measurement and Assessment

• Implementing techniques for quantifying longevity risk.
• Understanding the use of risk metrics and indicators.
• Analyzing the impact of cohort effects and mortality improvements.
• Assessing the financial implications of longevity risk.

Module 5: Impact of Longevity Risk on Defined Benefit (DB) Pension Schemes

• Analyzing the impact of longevity risk on DB pension liabilities.
• Understanding the role of funding policies and contribution rates.
• Examining the challenges of managing longevity risk in DB schemes.
• Evaluating the financial sustainability of DB plans.

Module 6: Impact of Longevity Risk on Defined Contribution (DC) Pension Schemes

• Analyzing the impact of longevity risk on DC pension payouts.
• Understanding the challenges of decumulation and income planning.
• Examining the role of annuities and other income-generating products.
• Evaluating the retirement income security of DC plan participants.

Module 7: Longevity Risk Mitigation Strategies: Hedging and Risk Transfer

• Implementing strategies for hedging longevity risk (e.g., longevity swaps).
• Understanding the role of reinsurance and capital markets.
• Analyzing the use of longevity bonds and other risk transfer mechanisms.
• Evaluating the effectiveness of risk mitigation techniques.

Module 8: Longevity Risk Mitigation Strategies: Plan Design and Benefit Adjustments

• Analyzing plan design options for mitigating longevity risk.
• Understanding the role of benefit adjustments and retirement age policies.
• Examining the use of conditional benefits and variable annuities.
• Evaluating the impact of plan design on longevity risk exposure.

Module 9: Stress Testing and Scenario Analysis for Longevity Risk

• Implementing techniques for conducting stress testing and scenario analysis.
• Developing and analyzing realistic longevity scenarios.
• Understanding the impact of extreme longevity events.
• Evaluating the resilience of pension funds to longevity shocks.

Module 10: Public Policy and Regulatory Frameworks

• Analyzing the role of government policies and regulations.
• Understanding the impact of social security and public pension reforms.
• Examining the role of international organizations and best practices.
• Evaluating the effectiveness of public policy interventions.

Module 11: Communication and Stakeholder Engagement

• Implementing strategies for communicating longevity risk to stakeholders.
• Understanding the importance of clear and transparent communication.
• Analyzing the role of member education and financial literacy.
• Evaluating the impact of communication on stakeholder behavior.

Module 12: Financial Modeling and Forecasting

• Understanding the use of financial modeling tools for longevity risk analysis.
• Analyzing the impact of different financial assumptions.
• Implementing techniques for projecting pension fund cash flows.
• Evaluating the financial impact of longevity risk.

Module 13: Integrating Longevity Risk into Pension Fund Governance

• Understanding the role of governance and oversight in longevity risk management.
• Analyzing the responsibilities of trustees and risk committees.
• Implementing strategies for establishing effective governance frameworks.
• Evaluating the role of independent reviews and audits.

Module 14: Case Studies and Best Practices

• Analyzing real-world case studies of longevity risk management.
• Learning from best practices across different pension funds and regions.
• Identifying key lessons learned and challenges in implementation.
• Discussing the role of innovation and adaptation.

Module 15: Future Trends and Sustainable Pension Strategies

• Exploring emerging trends and opportunities in longevity risk management.
• Developing action plans for advancing sustainable pension strategies.
• Analyzing the role of technology and data analytics.
• Understanding the importance of long-term commitment and continuous learning.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 5 working days before commencement of the training.