Making the Money Last: The Case for Offering Pure Longevity Insurance to Retiring Canadians

16 Pages Posted: 13 Oct 2018

See all articles by Don Ezra

Don Ezra

Don Ezra Consulting Services LLC

Date Written: September 18, 2018


With a large swath of babyboomers recently retired or set to retire, and many of them having accumulated retirement wealth in capital accumulation plans, the time has come for governments to shift their attention to policies facilitating the efficient and economical decumulation of retirement capital. The provision of longevity insurance is an essential component for making this happen. Yet little policy research exists on why and how to make this a reality. This paper briefly explains longevity insurance and its value for retirees. It reviews the current Canadian and international environments, the obstacles for the development of pure longevity insurance in Canada, and what governments can do. Tax rules hindering stand-alone longevity insurance offerings need reform. Public education on the value of longevity risk protection at the start of retirement, when it is cheap to purchase, would be helpful. Requiring capital accumulation plans to offer their members the option to buy longevity protection at set ages towards the end of the accumulation phase would also help.

Keywords: Retirement Saving and Income; Individual Retirement Savings; Insurance; Workplace Pensions

JEL Classification: G22; J26

Suggested Citation

Ezra, Don, Making the Money Last: The Case for Offering Pure Longevity Insurance to Retiring Canadians (September 18, 2018). C.D. Howe Institute Commentary 521, Available at SSRN: or

Don Ezra (Contact Author)

Don Ezra Consulting Services LLC ( email )

220 Rverside Boulevard Apartment 20e
New York, NY 10069
United States
2127993052 (Phone)

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