Measurement and Impact of Longevity Risk in Portfolios of Pension Annuity: The Case in Sub Saharan Africa

Longevity is without a doubt on the rise throughout world due to advances in technology and health. Since 1960, Ghana’s average annual mortality improvement has been about 1.236%. This poses serious longevity risks numerous longevity-bearing assets liabilities. As result, this research investigates effect of pension annuities related particular scheme Ghana. Different stochastic models (Lee–Carter, Renshaw–Haberman, Cairns–Blake–Dowd, Quadratic Cairns–Blake–Dowd) are used forecast improvements between 2021 2030. The results from accuracy metrics indicate that quadratic Cairns–Blake–Dowd model exhibits best fit data. findings study demonstrate for increasing ages within retirement period was declining, with associated ages. Furthermore, forecasts were estimate single benefit annuity GHS 1 per annum payment pensioners, it discovered value expected be paid such people not significantly different regardless pensioner’s current age.