UK Deficits Could See £310 Billion Reduction Due To Inaccurate Life Expectancy Statistics
New data from the UK’s Continuous Mortality Investigation reveals that the UK’s projection of longer life due to improving medical technologies lacks foundation because of startling deviances in statistics. Estimates include a £310bn wipe-off from the currently billion-pound deficit of all industries towards defined-benefit pensioners in the country.
According to PricewaterCooper’s Head of Pensions Raj Mody, their estimates for life expectancy growing to improved proportions have a strong margin for error. He said that if one assumed a 40-year-old man lives to 90 years old but passes away six years earlier, the amount of pensions decreases significantly. On a grand statistical figure, the amount could mean billions of pounds.
In 2016, about 350 businesses in the United Kingdom had pensions rice by 9 percent and become worse by the passing of March and April. PricewaterCoopers noted that the defined benefit pension funds for long-time employees had increased from £30 to £530bn due to the inflation.
Currently, UK companies are not providing defined benefit pensions to new and younger employees and are only offering defined contribution pensions, which affixes an amount that is final for retirees in the near future.
However, pensions think-tank Mercer said it still expects the statistics to improve in the next few years as life expectancy will still rise with the progressive advances in the UK’s medical technology.