Longevity. It's something that directly affects all of us. But what are the implications for pension schemes, for companies and society as a whole?
For many pension schemes longevity is their biggest unmanaged risk. Schemes know that it is significant; indeed many will have seen funding liabilities increase by up to 20% over the course of a decade, as actuaries have revised assumptions upwards.
Yes despite the size of the risk, it has often been left to the actuary to manage. Trustees have felt unable or unwilling to take ownership. But the good news is that is now changing.