Cost of longevity risk rockets amid record low yields

Kristian Brunt-Seymour
clock • 2 min read

The cost of longevity risk for defined benefit (DB) schemes has increased by 50% in the past 12 years due to falling long-term interest rates.

Analysis by Hymans Robertson reveals how low real gilt yields of close to -1.5% per annum had significantly magnified the impact of longevity risk. This has been worsened by the UK's decision to...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

More on Risk Reduction

Welcome Break Pension Plan agrees £23m buy-in with Just Group

Welcome Break Pension Plan agrees £23m buy-in with Just Group

The transaction secures the benefits of all 348 scheme members

Holly Roach
clock 12 September 2025 • 2 min read
Utmost looks to client proposition following BPA progress this year

Utmost looks to client proposition following BPA progress this year

Insurer ‘proud’ of momentum in the year since its launch into bulk annuity market

Jonathan Stapleton
clock 10 September 2025 • 1 min read
Pension Insurance Corporation posts half year results

Pension Insurance Corporation posts half year results

Insurer completes deals worth £1.1bn with eight schemes in first six months of year

Jonathan Stapleton
clock 09 September 2025 • 1 min read
Trustpilot