Life proposals shunned by pensions group

Fri, 16 May 2008

The pensions lobby group shunned proposals by the Pensions Regulator to force pension schemes to utilise conservative mortality assumptions. The lobby group say it will cause unnecessary pressure.

Under pension regulator plans, companies would have to assume that a retiring 65-year old would live until the age of 90. This is around five years longer than that assumed by most companies . The proposals are known as the long cohort, and could stack up pension scheme liabilities.

The National Association of Pension Funds said in a prepared statement: "The NAPF believes selection of the long cohort projection ... will have unintended consequences. It will push trustees to adopt this assumption in all circumstances, even when not justified by their scheme-specific circumstances or when sufficient prudence has been exercised in the selection of other valuation assumptions."
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Pensions.co.uk is part of a large network of financial sites created to help advise you on life events, such as buying a house, Mortgages.co.uk; insuring your car - CarInsurances.co.uk; your life - LifeInsurance.co.uk; and your home - HomeInsurance.co.uk.

1998 - 2008 UK Pensions - Planning before, at the onset and during retirement.

Join the Pensions NewsletterPensions Newsletter

Please enter your email below and subscribe to our monthly newsletter

Save money on your mortgageSave on Your Mortgage

Would you like to save money on your mortgage? Fill out our quick mortgage enquiry form.

Health cover, life insurance and PMIProtect Your Health

Find Critical illness, Life and Private Medical Insurance PMI policies.