The approach used for longevity trends is often simple and generic. But it is now possible to do better.
The appendices are written with an informed audience in mind and are designed to provide confidence in the rigour of the research and the necessary supporting documentation. It will be a valuable tool for Scheme Actuaries, corporate actuaries and longevity consultants in informing advice.
However, we would encourage other interested readers not to be put off looking at the Technical Appendices. Hopefully it is accessible to a wide audience.
If you would like to request printed copies of the Appendices or for any other enquiries please contact Steven Hood
The NAPF Longevity Model set out analysis that demonstrates that the following groups experience different longevity trends. Try our Longevity Trend Group Finder Tool, just click on the left hand menu.
To understand how your scheme membership breaks down into these groups, find the IMD quintile value (where IMD quintile 5 refers to the highest level of deprivation and IMD quintile 1 refers to the lowest level of deprivation) for each member using the postcode data that you hold and the list accessible through the link below. For males you will also need to assign a pension amount grouping for each individual (one of <£5k, £5k - £7.5k,>£7.5k), measured as at July 2013.
Note that we are unable to provide postcodes directly for Northern Ireland. In this case please use the LSOA to determine the appropriate IMD Quintile. This Zip file contains:
Postcode and LSOA code were sourced from the Office of National Statistics website for August 2013.
Where a postcode is not included, the postcode either belongs to an LSOA code which was not present in the data set used to create the adjusted IMD index or is a Northern Ireland postcode for which the data falls under a separate licensing agreement.
If you are experiencing issues mapping your membership’s postcodes please contact Club Vita for assistance.
The National Association of Pension Funds (NAPF) and Club Vita LLP (CV LLP) have provided, to the pensions industry as a whole, both: an understanding of how differently longevity has been improving for different groups of DB pensioners (such as those at different ends of the deprivation spectrum); and materials that pension schemes, and their advisors, can use in practice to better inform the assumptions that are adopted for longevity trends (together, the “Research”).
The Research is based upon NAPF and CV LLP’s actuarial understanding of legislation and events as at November 2014 and therefore may be subject to change. The Research is NAPF and CV LLP’s understanding of how differently longevity has been improving for different groups of DB pensioners and is not, nor is it intended to be, specific to the circumstances of any particular pension scheme.
The information contained herein is therefore not to be construed as advice and should not be considered a substitute for specific advice in relation to individual circumstances. Where the subject of the Research refers to legal matters please note that neither NAPF nor CV LLP are qualified to give legal advice therefore we recommend that you seek legal advice. Neither NAPF or CV LLP (nor their respective licensors) accept liability for errors or omissions in the Research and neither NAPF or CV LLP (nor their respective licensors) owe nor shall accept any duty, liability or responsibility in regards the use of the Research except where we have agreed to do so in writing.
The Research contains copyright and other intellectual property rights of NAPF and CV LLP and their respective licensors. You shall not do anything to infringe NAPF or CV LLP’s or their licensors’ copyright or intellectual property rights.
If you are seeking to use the information contained in the Research after the date it was produced then please be aware that the information may be out of date and therefore inaccurate.
We recommend that you speak with your appointed longevity consultant and/or other professional advisers should you have any queries in relation to the Research.
Gender, affluence, occupation and lifestyle - four major factors that significantly influence our individual longevity. Just move the sliders to see how long Mr (or Mrs) Predictor's longevity is affected.
*Please note - Mr Predictor's just a bit of fun. Determining longevity is a complex affair and there's a lot more to it than these simple things. If it was as easy as that, we'd be out of business.
With life spans rising at a rate of 2.5 years per decade, and no sign of this growth slowing down, we all know longevity is a big issue for pension schemes, but opinions are hugely divided on the best way to tackle it. Our guide introduces both sides of the argument:
Either way, it’s crucial to be well informed on the options available and to have enough information on your members to make the best, informed, decisions for your scheme.
To download the full guide - please click here
Gender, affluence and lifestyle - three major factors that influence longevity improvements. Just move the sliders to see which longevity trend group Mr (or Mrs) Predictor is in.
The NAPF’s Longevity Model, powered by Club Vita, can aid Trustees in their approach to setting a longevity trend assumption which is tailored to the scheme. Men and women of different affluence and lifestyle experience different longevity trends. Those who experience similar longevity trends have been grouped and this tool can help you understand which members will be in which longevity trend group. If you would like to map your full scheme’s membership to the NAPF Longevity Trend Groups please contact Club Vita for assistance.
*Please note - Mr Predictor's just a bit of fun. Determining longevity is a complex affair and there's a lot more to it than these simple things. If it was as easy as that, we'd be out of business