Rising Longevity Driving Increases in UK Pension Liabilities

Reuters reports that corporate pension obligations in the UK are increasing as a result of improving life expectancies.

According to consultancy Aon Hewitt, there has been a "huge amount of improvement in terms of life expectancy assumptions" over the past 10 years.

The flipside of this increasingly longevity is the risk that it presents to those who must finance greater longevity.

For example, it is estimated that rising rates of longevity contributed 5 billion pounds to British corporate pension obligations in 2010.

Source: Reuters

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