If you are worried about how to plan for your retirement in the 21st century, then Tontine Trust offers the solution you need. As their motto suggests, their aim is to help consumers live long and prosper. Well, TontineTrust is about implementing a prosperous, decentralized retirement secured on the blockchain.
Their whitepaper identifies major concepts upon which TontineTrust is founded:
“With over 44% of men and 55% of women now expected to live into their 90s, it means most consumers will outlive their private savings by 5 years and many by at least 10 years. Current retirement products such as life annuities are unpopular due to low returns mostly caused by the high cost charged by insurers, which act as centralized ‘guarantors’.
TontineTrust platform aims to implement a solution to the costly centralized guarantor problem by creating peer-to-peer tontine structures administered by an unbiased, mathematically robust smart actuary. The platform is expected to generate more than 40% higher payouts than guaranteed annuities. At TontineTrust, the annuities are decentralized such that the profits go to the Tontine members rather than annuity issuers.
What Are Tontines?
Introduced nearly 300 years ago, Tontines are a retirement funding solution. In the late 19th century, they were so popular especially in the US, where more than half of all households invested in a tontine, a modern equivalent of 170 billion dollars. France adopted the same system but fell out due to what they termed as lack of transparency in the system.
In 2017, the top 20 OECD countries face a 78 trillion-dollar pension deficit. Besides, the Fitsch Ratings have downgraded the insurers, which are often the counterparties of many of the most widely held private pension products.
With the introduction of Bitcoin and blockchain technology, the time is ripe for a trustless peer-to-peer system that offers consumers substantial cost and time efficiencies. Besides, there is a need for a system that secure, immutable, and anonymous. On TontineTrust platform, each member will undergo a biometric authentication as a measure of security in the system. Besides, each member will receive monthly payouts for their Tontine accounts, which are linked to TonCards that they can use at more than 40 million merchants and ATMs across the world.
Tontine Trust Key Features
Higher Initial Payouts:
As a no-load, low-fee product, the Tontines can provide an estimated more than 40% higher payout than an equivalent annuity product from the start which enhances your quality of life.
Increased Yields Over Time:
The Tontines only continue payouts to surviving members. This causes the payouts to escalate over time (often dramatically in later years) independently of underlying investment returns.
We take security seriously. Tontines are locked to each member's encrypted identity. Only biometrically authenticated members can authorize payouts, resulting in utmost security in the system.
Simple And Comfortable:
Other retirement products are complex and hard to understand. Tontines are simple and transparent. Members always have unparalleled visibility on the underlying ETF or other assets, as well as projected future payouts.
Tontine Trust Conclusion
By first quarter 2018, TontineTrust will embark on token sale completion, platform development, final regulatory applications, and team expansion. In first quarter 2019, TontineTrust will be the space to watch.