Which is least effective in managing longevity risk

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Problem: Benny (aged 66) is a homeowner who retired seven years ago. At that time, the balance of his superannuation account was $300,000. Today it is $140,000 as a result of Benny drawing on the capital to fund his retirement income needs and poor investment returns. Benny is concerned that he will outlive his savings. Which is least effective in managing longevity risk?

Reference no: EM133664269

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