January 11, 2010

UK: Specialists 'still fail to grasp cost of rising longevity'

. LONDON, England / Financial Times / Pensions / January 11, 2010 By Emma Ann Hughes / InvestmentAdviser Even pensions professionals still underestimate the effect of increased longevity on their schemes, according to Hewitt Associates. Martin Bird, head of longevity and risk transfer solutions at Hewitt Associates, said pension scheme longevity assumptions had increased significantly over recent years. This rise reflected continued improvements in life expectancy but, he added, there still appeared to be a significant knowledge gap when it came to understanding expected longevity. Mr Bird said the financial implications – potentially £150bn - on UK pensions schemes "spoke for themselves". [rc] Emma Ann Hughes emma.hughes@ft.com © The Financial Times Limited - 2009