For more information about PLANSPONSOR Europe 

James Redgrave
Managing Editor
Tel:+44(0)2073973802
Tel:+44(0)7817305075
EMAIL  

Graham Simons
News Editor
Tel:+44(0)2073973801 
EMAIL   

Daljit S. Sokhi
Online Sales Manager
Tel:+44(0)2073973809
Mob:+44(0)7792419482
EMAIL  

Robert W. Jones
Global Publisher
Tel:203-595-3174
EMAIL  

Think Green

PLANSPONSOR Europe  

is also available in a digital edition.

Check it out HERE  

FINANCE

e-mail   print   reprint   share   Login to Recommend

Plan Sponsors Urged to Take Tailored Approach to DB Liabilities

17 July 2012 (PLANSPONSOREurope.com) – With people in the UK living around a decade longer than at the time of the last London Olympics in 1948, plan sponsors have been urged to develop a tailored strategy for managing the liabilities of their pension scheme, according to Aon Hewitt.

The data reveals:

Longevity

1948

2012

Life Expectancy

Men – 66
Women - 71

Men – 78
Women – 82

100m record

Men 10.2 secs – Lloyd LaBeach (Panama)

9.58 secs – Usain Bolt (Jamaica)

 

Women 11.5 secs – Fanny Blankers-Koen (Neths)

10.49 secs – Florence Griffith-Joyner (USA)


Martin Bird, managing principal at Aon Hewitt, said: “Usain Bolt has ambitions to take his world record even lower and he should have longer to achieve it, as his life is likely to last longer than most of his record-holding predecessors.  In the UK, for example, standards of living and medical advances over the past 64 years mean that over 11 million people alive today can expect to live to over 100 years old - a number that is growing constantly.  By 2076 – another 64 years’ time – men are predicted to live to an average age of 89 and women to 92. However, calculations show that the change in life expectancy over the past 15 years has added around 30% to UK defined benefit (DB) pensionscheme liabilities.

“While many schemes have already taken steps to reduce their longevity risk, life expectancy can only become an increasing concern for them, as it continues to rise. In the first instance, trustees and sponsors must ensure that projections for their scheme members' life expectancy are as up to date as possible and that they explore the range of risk settlement options available to them. This market has grown significantly in the past decade and pension schemes now have genuine choices. It is essential that trustees and sponsors act to ascertain the most appropriate strategy for their scheme.”

 

 

PLANSPONSOREurope Staff
editors@plansponsoreurope.com





GfJ432Hghb43dfs3dasds4at8