Just for reference (and to see if longevity insurance is a good deal), I ran some numbers using the SSA actuary tables (at http://www.ssa.gov/oact/STATS/table4c

Just for reference (and to see if longevity insurance is a good deal), I ran some numbers using the SSA actuary tables (at http://www.ssa.gov/oact/STATS/table4c6.html http://www.ssa.gov/oact/STATS/table4c6.html). I ran a few scenarios as follows, assuming no administrative overhead: 1) If everyone in a given pool puts in $50k at age 65, the surviving members can withdraw $18k per year starting at age 85 -- any more and the fund runs dry. 2) If the fund is invested at an interest rate of 2%, they can withdraw $30k annually starting at 85 without the fund running out. 3) At 5% interest, that number goes to $62k. For comparison, according to a random article on longevity insurance, Met Life quotes a payout of $15k per year (at 85) if $50k is invested at age 65. Also, as another point of reference, if you invest 50k at 65 and get 5% returns, and withdraw 13k staring at 85, you will have enough to last you till age 96. So the longevity quote above really isn't that great of a deal.