A life expectancy tool that assesses longevity based on information including a health assessment from a qualified nurse is aiming to help advisers with defined benefit pension transfer advice.
The FCA introduced a rule this year that advisers making a recommendation on a DB transfer must plan for a client living a “reasonable” period beyond average life expectancy.
The new service, run by medical underwriter Morgan Ash, involves a nurse firstly conducting phone interview with the client about their health, lifestyle, occupation and family history.
That information is evaluated by an underwriter who then assesses it for longevity.
The services uses Office for National Statistics data to model the ‘normal’ life expectancy for the client, which is then updated with the client’s health information to get their life expectancy estimate.
Morgan Ash says many advisers still use “flawed approaches” when considering life expectancy, such as relying on statistical average figures that take no account of the individual’s health or lifestyle.
It says these methods may not satisfy compliance requirements.