Longer life could cost pension schemes tens of millions

In a speech to the UK Pensions and Investment Summit in Brighton, Norgrove has warned scheme trustees and their advisers to look again at the assumptions they have made about life expectancy to ensure they “remain suitable”. He suggests failing to do so could leave pension schemes with tens of millions of pounds of unforeseen liabilities. Norgrove says: “While individual schemes may have made different assumptions which may be appropriate and prudent the indications are that some schemes are probably underestimating life expectancy. “The effects of changing life expectancy are so substan...