Doom gloom and despondency has always surrounded the pensions industry. But according to the delightfully titled 'Continuous Mortality Investigation' the grim reaper is coming much sooner than we thought.
This is great news for the pension industry as they don't have to pay the old duffers for as long as they had thought.
As for those with annuities, all those calculations should be done again by Life Companies and recipients given an uplift. Wonder who will be the first to do it?
For the rest of us? Those pension pots we have all been saving may not have to stretch so far. Hopefully IFA's will be having a busy day.
“Future mortality improvement is of course uncertain, but we’d view a further fall of 15 per cent in liability values arising purely from changes in projected longevity improvements as a one in 20 extreme scenario,” said Tim Gordon, longevity specialist with Aon and chairman of the UK Continuous Mortality Investigation, the body responsible for producing standard mortality tables and projections for the UK actuarial profession.