Smoking kills. No surprises there. It has also been recognised in the pricing of term insurance in the UK since the early 1980s and more recently in annuity pricing. But what do we know about the impact of smoking on mortality improvements?
Our latest survey on accounting for pension costs by FTSE100 companies shows schemes have made little progress towards reducing deficits over 2014. Employers should start planning now for whatever 2015 might hold.
EIOPA has launched a stress test for pension funds, alongside an assessment of how its holistic balance sheet proposal might be used in practice. Participating could be an interesting exercise for trustees and employers.