Life Trust launches pension risk mitigation product

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Life Trust launches pension risk mitigation product

Fri 3rd Oct 2008

A product to reduce the risk of pension scheme longevity has been launched by Life Trust.
The Longevity Risk Manager (LRM) is designed to help small and medium-sized pension schemes cope with the financial demands of increased longevity.
It helps to reduce the risk without the need for a major transfer of capital.
Andy Briscoe, chief executive of Life Trust, said that buy-ins and buy-outs were the traditional methods of handling longevity risk, but these are not suitable for many schemes because of the expense.
"We believe that the LRM provides a genuine alternative to these options, whilst at the same time protecting capital and allowing trustees to retain full control of their schemes," he said.
According to the 2008 Cost of Retirement report released by Life Trust in July, the average cost of retirement in the UK in £413,000.
Wealthier people wanting to maintain their living standards could need up to £1.55 million to fund their retirements.

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