Pension Insurance Corporation has launched a new insurance product to protect defined benefit pension funds and their sponsors against the cost of pensioners living longer than expected.
The policy will reimburse pension funds for the cost of any future pension payments that arise from pensioners living longer than expected. In return for this protection pension funds will pay fixed annual premiums set at the inception of the policy. It will remain in force until the death of a pension fund’s last covered pensioner or their dependant, such as a spouse. Pension Corporation developed the longevity insurance product in recognition of the fact life expectancy is increasing in the UK. Sixty-five-year-old British men can today expect to live 4.5 years and women 3.2 years long...
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