ABOUT OUR LIFETIME INCOME PRODUCTS

Tontine pensions are a low fee solution for delivering safe lifetime incomes which are expected to rise faster than inflation.

A Tontine is like a mutual society
where profits go to the pensioners
rather than to shareholders
of an insurance company

A Tontine is a 367 year old European lifetime income product. Upon being launched in the US to compete with annuities, they were so much more popular with consumers that they grew the voluntary pension savings rate such that within a single generation over 50% of all households saved into a Tontine Pension.

This blockbuster product grew the US insurance industry by 600% but led to fraudulent behaviour by the insurers until in 1906 when new regulations banned them from making excessive profits at the expense of tontine pensioners. Eventually, Defined Benefit pensions came along to fill the gap which annuities still could not.

Fast forward to 2020 where the demise of Defined Benefit pensions has created a problem for the 2 billion people aged over 50 which now face the highly justified fears in retirement that:

#1: They will live so long that they will run out of money, &

#2: That if long term care is needed, they will eventually be unable to continue paying for it.

So instead of spending their golden years worrying about how quickly or slowly they should spend their savings, 84% of retirees would rather exchange their retirement capital for a lifetime income stream but the same old annuity solution (to the extent even offered in a low interest rate environment) remains the most hated financial product in the world for both cost & behavioral science reasons."the which offer longevity protection however existing products.

This year, TontineTrust will launch the globally patent pending MyTontine platform, enabling any user with a mobile phone to sign up within minutes for a safe low-fee mutual fund product which they can trust to pay them a monthly income even if they live up until the age of 120.

Research shows that when you remove the fear/risk of running out of money, your lifestyle, health & even your I.Q. can improve so we look forward to seeing how our platform will affect the lives of individuals as well as of whole societies.

Research by 100 insurers shows why only Tontine Pensions can provide the "Perfect" solution:

According to the Asia Retirement Income Report (2017) : "the ‘perfect’…product is likely to have…":

Consumer Want #1:
A Lifelong Income

Our Tontines will offer monthly payouts from retirement age up until age 120+ if needed.

Each tontine is a closed pool of up to 10,000 same-age, same-gender members which invest whatever they can afford. Their payouts are proportional to the amount invested.

Consumer Want #2:
The Income Increases

In a Tontine, when a member dies, their expected payouts are shared with the other members of the pool which results in the payouts for surviving members rising over time.

By design, payouts should rise faster than inflation & should rise substantially in later years as the remaining capital must all be paid out to the surviving members.

Consumer Want #3:
The Capital Is Safe

The capital of the tontines is held in trust for the members & invested by globally trusted asset managers in highly conservative portfolios strategies of the kind deemed suitable for widows & orphans.

This means that the capital is safer than if it is paid to a large insurer which by their nature carry very high liabilities.

Consumer Want #4:
The Fees Are Very Low

Unlike Annuities that charge up to 30% up front & 3-5% per year in management fees, our Tontine Pensions will charge a flat 1% per year.

By reducing the fees so drastically, our Tontines offer higher monthly payouts than annuities even before mortality credits start to boost the monthly income of surviving members.

ONE PLATFORM - A WORLD OF USE CASES

Our platform model is to align with partners across the globe to help many consumer segments

Mass Affluent Baby Boomers
Facing Uncertain Longevity

Worrying about every penny you spend each day affects your happiness, decision-making & often leads to poor health choices.

Having a tontine style lifelong income stream means that you can be more productive & are now financially rewarded when you take better care of your health.

Micro Pensions &
the Unbanked

In markets with no established savings or pension systems we will offer a secure leapfrog solution enabling a trusted nationwide savings system to be accessed even in rural settings.

Savers need only know someone with a smartphone in order to be able to register a savings or pension account.

Millenials &
Gig Economy Workers

Millenials &
Gig Economy Workers

Millenials are sceptical of the benefits of pensions overall & are generally more interested in flexible & transparent financial solutions.

Our DIY pensions incentivise saving by showing the substantial gamified rewards for saving into a Tontine & transparently show the assets & calculations underlying all projected future payouts.

Shariah Compliant Islamic Finance Products

Shariah Compliant Islamic Finance Products

Other lifetime income products such as annuities offer guaranteed payments by one party which are contrary to the risk sharing principles of Shariah Finance.

Tontine Pensions are shariah compliant by nature based upon the risk sharing principle as long as the underlying investments of the tontine are selected to be shariah compliant also.

TONTINE PAYOUTS ALMOST LOOK TOO GOOD TO BE TRUE

“(A tontine’s) mortality credits enables investors to earn a type of guaranteed alpha not available in any other asset class.”
- Wall Street Journal Marketwatch Column

Tontine Pension

Your future expected payouts are updated in real-time based upon mortality rates & investment returns

Indexed Annuity

Offers a fixed monthly payout which
escalates by 3% per year

Fixed Annuity

Offers a fixed monthly payout which loses purchasing power due to inflation

Account Drawdown

The cash is held in a deposit account & drawn down over 20 years

Expected Monthly Payout comparison for
a 65 year old UK man investing £1m

NOTABLE ENDORSEMENTS

Tontine Trust & Tontines continue to receive endorsements from Financial Scholars,
Financial Institutions & the Financial Media

Quotation Marks A Tontine resembles a simple low-fee annuity with lifetime payments. Yet unlike an annuity….a Tontine can pay a higher yield because of its relative simplicity of structure.

Prof. Moshe Milevsky

As quoted in The New York Times

Quotation Marks Love the idea of tontines. They solve so many problems for retirees. These guys are bringing them back... super interesting.

Raoul Pal, CEO

Real Vision TV

Quotation Marks You are the first retiretech in the world and we are sick of hearing about you... When you enter the US market, we are your natural partner.

TIAA Innovation Team

$1 Trillion Retirement & Savings Incumbent

Quotation Marks Tontines pose less risk to members than conventional annuities since there is no contractual obligation on payout, no counter-party risk and no need for insurance-company reserves.

Edward Chancellor

The Spectator Magazine

Quotation Marks Considered as a life-cycle asset, [a tontine] proved to be an excellent investment, earning a rate of return substantially in excess of that generally available on other assets.

Profs Ransom & Sutch

The Journal of Economic History,
Cambridge University Press

Quotation Marks (Annuities) are relatively expensive because their issuers must hold a large capital buffer. Retired people tend not to like them as they pay a low rate. Tontines are simple to understand and could be much less costly than annuities because the risks are not taken onto the balance-sheet of an insurer. Quotation Marks

The Economist Magazine

Quotation Marks The Tontine: A 17th Century Solution to a 21st Century Problem…….. What is insurance except a pool of people coming together to share risks? What better product for our era than a crowd-sourced, peer-to-peer, sharing economy life insurance solution.

Huffington Post

Quotation Marks You get thrown 30-, 40-, 50-page documents explaining some kind of annuity using this particular background, and 12 different kinds of investments that feed into it, and your eyes gloss. By comparison…the tontine is unbelievably simple — you can explain it in two pages.

Kent McKeever

Tontine Historian at Columbia Law School

Quotation Marks A trust and efficiency engine like blockchain technology has the potential to drive radical change in the insurance industry while improving transparency and outcomes across the entire value chain… Failure to act may consign many large players to the continuing trust deficit or, worse, irrelevance. Quotation Marks