UK - Government should look to use public-private partnerships to address taxpayer exposure to defined benefit longevity risk, Swiss Re says.
In its report, [asset_library_tag 1667,'A short guide to longer lives: Longevity funding issues and potential solutions'], the insurer warned that underestimating life expectancy by one year can increase a pension plan's liabilities by up to 5%.
The firm - which was behind the £750m Royal County of Berkshire longevity swap deal - said governments already worked with insurers to address other financial risks, such as those associated with natural catastrophes, and could therefore also look to create a mutually beneficial resolution for longevity risk.
Swiss Re also called on policymakers to consider realigning retirement ages with life expectancy and providing support for the longevity capital market following the unveiling of the Life and Longevity Market Association's (LLMA) longevity index framework earlier last month.
Swiss Re head of life & health products Christian Mumenthaler said: "While life expectancy is on the increase, the time required for implementing effective longevity funding solutions is running out.
"Insurers, governments and pension providers must act now to ensure that living longer remains a benefit to society, rather than a financial burden."
Richard Wohanka is to chair The Pension Superfund's trustee board, working alongside professional firm 2020 Trustees to safeguard members' benefits.
Four people behind a £13.7m cold-calling scam which cost 245 people their savings have been banned from being pension scheme trustees by The Pensions Regulator (TPR).
The Pensions Administration Standards Association (PASA) has launched its latest round of guidance for guaranteed minimum pensions (GMPs).