>> Current life expectancy is about 20 -23 years at age of 65,
>> (currently lower, but was anticipated to rise).
>> My brain now hurts, anybody else like to try to work the impact on future
>> life expectancy!
It would hopefully be a one-off effect anyway - with luck there will be some general level of immunity by next year, and maybe even vaccines and treatments.
I declare an interest, having spent the morning in a discussion about liability driven investments for a company defined benefit pension scheme that I am a trustee of. We didn't discuss this, but I suppose the effect would be to increase the funding level as the liabilities would fall should there be a higher-than-forecast level of mortality among both deferred members and pensioners.
It would make no difference to pensioner benefits, it would just reduce the deficit that the employer is on the hook for. Probably not by a lot in the great scheme - it would tend to be the older ones who died early, and some would have dependents who would continue to get a reduced pension.
In a defined contribution/money purchase scheme, it would depend on what the effect is on the economy and how that affects the investments. When people die, their bit of the fund gets paid out one way or another so doesn't directly affect the others.
I don't know enough about how other types of pension arrangements work to have much of a view.
Last edited by: VxFan on Fri 13 Mar 20 at 18:44
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