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.