Betting on Longevity
By Arnold Kling
While someone in the 1840s lived, on average, to 40, today’s generation can expect to hit 80, “and for our grandchildren, it could be 160,” says [pension economist David] Blake, stabbing a pale green corner of his fan chart.
The market goes on to talk about market instruments that might allow investors to speculate or hedge on forecasts of longevity. If such a market does develop, I will be taking a more optimistic view than Mr. Blake. I tell my high school students now that I think there is a good chance that they will be immortal. Thanks to Tyler Cowen for the pointer.