The Capital Markets, Insurance and Pensions Authority has recently released new data indicating a rise in life expectancy. This information is significant for pension funds and schemes, as they are required to factor in life expectancy when determining monthly pension payments for retirees. As a result of the new data, the monthly pension for new pensioners is expected to decrease by around 0.5%.
For insurance policies without a guaranteed rate, the pension size for new retirees is projected to decrease by approximately 1%. These adjustments reflect the Authority’s commitment to maintaining the financial sustainability of pension funds and schemes in light of changing demographic trends and life expectancy data.
The increase in life expectancy will also impact disability pension insurance, which is likely to increase, while the cost of death pension insurance is expected to decrease. It is important to note that these changes will not affect policies with a guaranteed conversion rate, as these have not been sold since 2013.
