State the correct option?

A. Risk of longevity is best managed through pensions

B. Early death can be handled through pension

C. Investment risk cannot be addressed through pensions

D. Inflation risk is not managed through pensions

Answer: Option A

Solution(By Examveda Team)

Risk of longevity is best managed through pensions. Longevity risk is one of the biggest risks facing retirees. It refers to the risk of outliving your savings. Longevity issues arise as people enter retirement, generally with a fixed amount of money to fund their retirement years (either in the form of a lump sum or pensions), but with no idea of how long they will live and, therefore, no idea how long their money needs to last.