It’s well known that women live longer than men. That’s great for women, but not so great for women’s colleges when it comes to the risks surrounding Charitable Gift Annuities. In fact, the combination of longer lifespan of alumnae and underperforming investments could actually be putting women’s colleges at a serious disadvantage.
When it comes to the mortality tables that are used, The American Council on Gift Annuities (ACGA) sets rates that are unisex. This is not the composition for the annuitants at female colleges and given the average longer lifespan of participants, these schools are likely to see lower profits than expected and are at greater risk for financial loss.
