U.K. pension plans could see an easing of their liabilities, based on the latest longevity data from the country’s Institute and Faculty of Actuaries in its continuous mortality investigation (CMI).
The report showed both men and women’s longevity, as of age 65, has decreased by about six months compared to 2017. Indeed, the 2018 version of the model held the lowest cohort life expectancies than in all previous versions.
“In the context of triennial valuations, pension scheme trustees may also be interested in how CMI 2018 compares with CMI 2015,” noted a press release. “Here, the life expectancies at age 65 are 13 months lower for males and 14 months lower for females in CMI 2018, reflecting the low improvements during the intervening years.”
Improvements in mortality have been slowing down, according to the data. Between 2000 and 2011, average improvements were about two per cent, with slightly lower improvements for women. However, since 2011, improvements have dropped to an average of 0.5 per cent.
While mortality will likely continue to improve over time, the rate at which it does may be in for a long-term slowdown, as opposed to suffering from a short-term lag, noted the report.