View more on these topics

Advisers underestimate life expectancy at their peril, warns Pensions Regulator

Underestimating life expectancy among their members could leave pension schemes with tens of millions of pounds of unforeseen liabilities, the Pensions Regulator has warned.

In a speech to the UK Pensions and Investment Summit in Brighton, the regulator’s chairman David Norgrove urged scheme trustees and their advisers to take another look at the assumptions they have made about life expectancy to ensure that they remain suitable.

He said: “While individual schemes may have made different assumptions which may be appropriate and prudent, the indications are that some schemes are probably underestimating life expectancy.

“The effects of changing life expectancy are so substantial that they are worth revisiting. Each year of extra life adds about three to four per cent to pension scheme liabilities so, with £800 billion of liabilities across all UK pension schemes, getting it wrong could mean some nasty surprises in the future.

“That is why it is essential that trustees and advisers address this increasingly important issue sooner rather than later.”


Turning Japanese

Multi-manager View, Nick Greenwood

Dawn risers

Jelf Group organised a charity event last weekend to mark the next phase in its growth strategy. It hopes that the New Dawn Ridgeway Walk will have raised 20,000 for the National Deaf Children’s Society. Staff from the group’s 20 locations to do the walk (pictured above right). The challenge follows the success of last […]

PTA principles

Icob advisers are being split into two camps over sales of PTA

Sour taste of sweetener

Scottish Equitable’s veteran pension guru Stewart Ritchie is alarmed that IFAs might find themselves carrying the can for complaints arising from employees who get sweeteners to leave defined-benefit pension schemes early.What’s more, Ritchie has warned the FSA and The Pensions Regulator about the situation where companies want people out of DB schemes to reduce liabilities […]

In Focus Ebola cover - thumbnail

White paper — In Focus: Ebola Virus Disease

Jelf Employee Benefits focuses on Ebola Virus Disease (EVD) and what this means for businesses with operations in West Africa. This will be of particular interest to those with employees either travelling to, or living within, West Africa, the area affected by the most catastrophic outbreak of Ebola to date.


News and expert analysis straight to your inbox

Sign up


    Leave a comment