Swiss Re calls for better longevity forecasting
by Richard Kilner
Story link: Swiss Re calls for better longevity forecasting
New research from Swiss Re has revealed that the continual rise of life expectancy has consistently been underestimated.
Whilst greater longevity is good news it also means that a pensions shortfall has developed, a problem worsened by the fact that forecasting rises in life expectancy is more difficult than in the past.
Daniel Ryan, Swiss Re’s head of life and health research and development, stated that employer pension funds were under-reserved for longevity risks and that other relevant organisations, such as governments, had not budgeted adequately for the problem.
Swiss Re’s research suggests that robust, predictive approaches towards forecasting longevity will be essential, and social and medical factors ought to be taken into account.
The research also calls for multi-disciplinary co-operation, and collaboration between medical experts, actuaries and demographers to better predict future rises in life expectancy.
Earlier this year the ABI urged the Government to grasp the nettle regarding long term care for the elderly, and called for concerns relating to increasing life expectancy to be addressed.