Hymans Robertson develops longevity database

The consultant said its subsidiary firm had been developing a database of records for the past 18 months in order to provide schemes with data on how postcodes and income levels affect mortality assumptions.

The firm said it is now statistically analysing the information and hoped to release the results next month.

Hymans Robertson partner Douglas Anderson said the information collected from the schemes would provide a database of information to help schemes calculate mortality assumptions for occupational pension schemes better.

He said: "For the first time we will be able to look at the reduction in mortality assumptions from historic data collected."

Anderson added: "We expect to see diversity between the type of people within different schemes, a difference in experience between the private and public sector. We will be able to look at postcodes to predict to how long someone will live."

Anderson said longevity was a "really big issue" and second only to investment strategy decisions and portfolio diversification – noting it could cut 0.5 percentage points off investment returns.

He said: "People’s attitude towards longevity is like that of global warming. It takes an accumulation of information to influence behaviour. But the government and policymakers need to make a decision now for the solid arity of young taxpayers who will have to fund an aging population in the future."