Around eight in ten savers between 50- and 64-years-old have underestimated their life expectancy, potentially leaving them with a shortfall in retirement.
Life expectancy amongst affluent men is rising faster than any other group, according to analysis by the Pension and Lifetime Savings Association (PLSA) and Club Vita.
Raj Mody says trustees and sponsors must get a handle on the issue of life expectancy assumptions.
Deficits could fall by hundreds of billions of pounds if the six-year stall in life expectancy improvements becomes a long-term trend. However, there is a risk of taking too much notice of short-term changes, writes Stephanie Baxter.
Schemes could see huge reductions in their liabilities on a funding basis if the recent slowdown in life expectancy improvements becomes a long-term trend, according to PwC.