Two years ago , the OECD said to Biden’s USA that pensions which offered protection against living too long were on the way.

Last Friday the USA , under Trump made it clear that things were changing

Sounds like the default decumulation solution brought in to the UK by the Pension Schemes Bill/Act

Privately quoted assets, even Bitcoin and other cryptocurrencies on the way but most extraordinary (vi) income strategies including longevity risk-sharing pools.

In Britain we’d interpret this as CDC, in the USA its been interpreted as Tontine IRA by Tontine Trust.

Tontine Trust is known to us in the UK by Dean McClelland who is CEO and Ian McKnight who is CIO. The Trust is Swedish, the Company was set up in Ireland.

Friends of this blog support their work in the States and so do I.

Tontine is of course a notorious word in the UK as it was outlawed for insurance companies to run tontines that paid out to the last person, the last person having a financial incentive to see his/her colleagues came to an earlier end so the the survivor lived in happy wealth.

Of course nowadays we think of CDC as open and Tontine too, new people come in to refresh the fund and the principal of a self refreshing trust paying to the next generation is familiar to anyone who has been involved in open defined benefit.

All the same, tontine has a legacy of villainy that is hard to clear, here in Britain. If the Tontine Trust wants to move across the pond, they will no doubt bear this in mind!

I’m pleased that they have been seen the starting lights turn green and that pooled longevity is as much a feature of American DC pensions as a lot else. We heard in the UK from Ian McKnight about alternative investments (including Bitcoin). Let’s hear of new methods to turn pots to pensions.

It will be interesting to discover the difference between Tontines and decumulation CDC.