As longevity expectations continue to rise, Laura Blows explores the options available to counter this and the move towards standardisation of the longevity hedge market
Schemes may have missed the boat in reforming employee benefit structures to reduce longevity risk, an expert says.
The government is greatly underestimating increased longevity and its state pension age hike is "not even treading water on the issue", Club Vita says.
Many in the industry would have thought there is little relationship between increasing male life expectancy and Viagra.
The Pension Protection Fund has contracted Club Vita to provide longevity services for the schemes it controls.
The state pension age should be hiked to at least 70 by the mid-2030s if concerns over the impact of rising longevity are to be allayed, industry experts say.
Using prudent assumptions to assess longevity swaps on an accounting basis could mean schemes are paying "over the odds" for certainty, Club Vita says.
Caroline Allen speaks to Club Vita about how the life expectancy of scheme members is changing and the implications this has for investment strategies.
Longevity hedge market growth in 2010 will depend on accurate risk pricing by schemes, Club Vita says.