Longevity risk management 'of paramount importance'
06 September 2010 at 15:49
Longevity risk is a "significant challenge" which needs to be tackled, one sector organisation has observed.
Martin Clarke, executive director for financial risk at the Pension Protection Fund, said that accurate measurement of this risk is "paramount" to an effective control environment and ensures that firms operating within the sector are protected.
His comments were echoed by Nick Flint, chief executive of Club Vita, after the two organisations formed a risk management partnership.
Mr Flint said that longevity is the biggest unmanaged risk for pension schemes and failure to manage it appropriately can "severely impact" the financial health of organisations.
"It's heartening to see schemes treating longevity as a risk to be managed and monitored regularly, just like any other," he explained.
Meanwhile, according to the National Association of Pension Funds, new government plans to restrict pensions tax relief for high earners are "sound in principle" but need some urgent fine-tuning.
Posted by Claire Robin