Covid-19 leaves schemes overestimating pension liabilities by up to 3.5% - research

Data from XPS Pensions on 22 March found pension liabilities may be overstated by between 1.5% and 3.5% as the full impact of the last 12 months on member longevity starts to become clear. The range would imply a potential reduction in UK company accounting pension costs of between £25bn and £60bn, the consultancy estimated. "Without consideration of how the pandemic has affected their members, schemes risk overstating their liabilities and ignoring key information when making decisions on risk management and long-term strategy," said head of demographics Steve Leake. A low interes...