Tontine
Tontina
- Date
- 1653 · confidence medium
- Place
- Paris, Île-de-France, France
- Credited to
- Lorenzo de Tonti
- Field
- Knowledge & symbols
What it is
Collective investment scheme devised by banker Lorenzo de Tonti to help governments raise capital: subscribers share a life annuity whose payout grows as fellow participants die.
What it led to
- Funding of state loans in France and other countries
- Spread of tontines through the 18th and 19th centuries
- Precedent for life annuities and pension funds