Understanding life expectancy and its impact on pension scheme valuation
Life expectancy has been increasing rapidly in recent years, so defined benefit pension schemes are investing more time considering the most appropriate assumptions to use:
Our client teams work in tandem with our specialist Longevity Consulting team to provide a concise report making best use of the data available and tailored to the specific needs of your scheme.
This report is intended to inform your understanding of the assumptions being considered for the forthcoming valuation, i.e. the choice of base table, any adjustments needed to it and an allowance for future improvements in longevity. It also provides schemes with an understanding of the level of prudence contained in the mortality assumptions, to give confidence that the assumptions are reasonable for the scheme’s members.
Partner and Head of Longevity Consulting Dave Grimshaw advises UK insurance and reinsurance companies on the financial issues around managing longevity risk.Get in touch with Dave