Spouse-Protected Tontines: Household Decumulation via Neural-Network Optimization
Updated
Updated · arxiv.org · Sep 30
Spouse-Protected Tontines: Household Decumulation via Neural-Network Optimization
1 articles · Updated · arxiv.org · Sep 30
Summary
Researchers have developed a spouse-protected tontine that allows household contracts to continue until both members have died.
The model uses neural networks to optimize withdrawals and investments, balancing household payments against terminal shortfall risk under real-world mortality and market scenarios.
Numerical experiments show spouse continuation is common and persistent, with book-level diversification sharply reducing tail risk but not expected per-contract costs.