Brazil’s RendA+ bonds, launched by the National Treasury in January 2023, are designed to provide a reliable, inflation- adjusted income stream to enhance retirement income security for individuals in defined contribution plans.39 –RendA+ bonds feature a structured payment plan that disburses funds in 240 monthly instalments over 20 years, linked to the Extended National Consumer Price Index (IPCA). This ensures that payments keep pace with inflation, maintaining retirees’ purchasing power. The design simplifies the investment process, making it accessible to individuals regardless of their financial literacy. –Payments linked to the IPCA safeguard retirees against inflation, providing stable income that adjusts to living costs. RendA+ operates as a market-driven instrument, with pricing based on the present value of future cash flows, ensuring transparency and trust. –An intuitive online calculator helps potential investors determine how much they need to save to achieve their desired retirement income, enabling them to make informed financial decisions. Ongoing education about the bond’s benefits is crucial to overcoming barriers to adoption, as the initial uptake faced challenges, including confusion about the internal return rate compared to other government bonds. The introduction of RendA+ marks a significant advance in Brazil’s retirement security efforts, by providing a straightforward means for individuals to convert savings into guaranteed income. Continued focus on investor education will be essential to maximize its impact and help more Brazilians secure their financial futures.2.3 Spotlights on innovation Singapore‘s CPF LIFE (Central Provident Fund – Lifelong Income for the Elderly)38 is a national lifelong annuity scheme introduced to address longevity risk amid rising life expectancies. This incorporates risk-pooling elements more commonly found in defined benefit systems into CPF’s defined contribution scheme, providing retirees with a stable, lifelong income stream. Participants contribute to their CPF accounts during their working years, and these contributions are then used to fund their retirement income. Those with at least S$60,000 (approximately $44,250) are automatically enrolled in CPF LIFE, which ensures broad participation and results in the effective pooling of mortality risks with minimal adverse selection effects. The principal strengths include: –Retirees can choose from three plans depending on their desired retirement lifestyle. To address potential loss aversion that participants may feel about purchasing an annuity, CPF LIFE was also designed to have a refundable feature, where participants will receive at least their premium either in the form of payouts or a bequest. –Premiums and payouts are actuarially determined, undergoing periodic reviews to accurately reflect actual mortality and investment outcomes, enabling financial sustainability over the long term. –CPF LIFE has low administration costs; it is administered by the Singapore government and is designed to be non- profit in nature. It does not incur distribution costs from agents’ commissions. The high participation also results in greater economies of scale in administration, resulting in lower operational costs. By integrating behavioural principles, flexibility, financial sustainability and economies of scale, CPF LIFE serves as an innovative model for countries seeking to strengthen financial security in later life. Singapore’s CPF LIFE – a model for retirement income Brazil’s RendA+ bonds for retirement security Future-Proofing the Longevity Economy: Innovations and Key Trends 1818

Future Proofing the Longevity Economy 2025