Longevity analyses for DB pensions
Understanding life expectancy and its impact on pension scheme valuation
Life expectancy has become an area of increasing focus for defined benefit (DB) pension schemes in recent years, as pensions schemes mature and de-risk.
The coronavirus pandemic has also shone a spot light on life expectancy, with increased uncertainty in how evolving factors today will affect life expectancy in the many years over which pensions are to be paid from DB pension schemes.
We believe it is important for Trustees to invest time in choosing the most appropriate longevity assumptions to use. Here are three reasons why:
Our client teams work in tandem with our expert longevity consultants to provide an informative report, making the 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.
Barnett Waddingham provides a flexible longevity analysis service; making best use of the data available and tailored to the specific needs of the trustees, at an affordable cost.Read our overview