Aug 13 2008
Longevity assumptions are almost as important as investment variability to pension scheme funding levels, a firm of actuaries and consultants has said.
Those saving for retirement may be interested in comments made by Lane Clark & Peacock LLP (LCP), which suggest people need to look at life expectancy when arranging pensions.
Partner at the firm, Adam Poulson, explained: "Changing one year life expectancy can add around three per cent in pension liabilities in an average scheme. It's a reasonably significant assumption."
He went on to say that around a quarter of FTSE Global 100 customers display longevity assumption details and most of the information is UK-based. He called for such companies to be "more transparent, more consistent and more sophisticated" in their setting of assumptions.
There are discrepancies between life expectancy levels in different countries, Mr Poulson said, while levels have increase by four to five years in the past three decades.
LCP was founded in 1947.
