3 ms·

So does life insurance.. but we still have that.

• fragmede 2mo ago
  What we don't have anymore though because of that, is tontines.
  • dspillett 2mo ago
    They are still around.
    • account42 2mo ago
      And common if you count retirement funds.
  • ralferoo 2mo ago
    Never heard of it, so just googled, but it's not obvious why these would be more preferable to annuities. As you get older above about 75, people tend to spend a lot less in general (assuming they don't need care support), so getting more money when you're unlikely to spend it anyway seems pointless. I'd speculate that the regular payments on annuities would therefore be higher than tontines because insurance companies would be able to factor in average life expectancy to the pricing more easily, rather than having to budget for possibly all the money continuing to be paid out to just one remaining person who happened to beat the odds and live well beyond 100 instead of the average around mid-80s.