Stuart McDonald’s comments are brutally commercial but need a little explanation. Here goes!
So what is this most comprehensive review of how we’re living longer look in CMI style graphs. Here goes
What I can see is a dramatic change in the numbers dying. I get that this is not doing much good for the balance sheets of insurers and reinsurers of the pensions we have built meaning that they are going to have to put up prices to protect their balance sheets and their share prices.
But this is good news for all of us Brits who (unless male and under 64 ) are getting older.
Now of course we need to apply this information to the pensions we are going to get from our DC pots and it may mean that whether certain (the kind Nest is going to offer for the core benefit ) or depending on what the fund’s earned (which pays the increases in Nest’s proposed pension) more money will have to be held back to meet us living longer.
Nest are currently procuring some protection for those living beyond 85 from insurers and other DC providers may use reinsurers or even face the future with people insuring each other (CDC).
We really should be paying the same interest to mortality information as Stuart McDonald and the CMI do (and actuarial consultants LCP and insurers).
This is not to hard for us to understand “mortality”. When we start getting it, then perhaps we will start thinking about our lives and what is likely to happen when we pass 85 (just as Nest are). We all know people who are older than 85 and we know how much harder it is to transact complex decisions like this whatever age (but especially as we get older).
So let’s thank people like Stuart and the CMI and do our best to translate what looks like bad news for insurers into good news for those still alive!
Let’s start thinking about how we can make our money last as long as we do and introducing ways of doing it with and without insurers.
Stuart gets recognition from the King.
