For many UK businesses, funding a defined benefit pension scheme is a financial headache.
Not only can their balance sheets accumulate deficits, they may also pay more into schemes than is needed.
The value of a pension scheme is estimated by actuaries – using a set of standard, but broad-brush, assumptions. Postcodes are often used as a measure of scheme members’ health – and therefore how long they will live. While not total guesswork, the resulting figures are rarely accurate.
Because they’re accepted as the only statistics available, assumption-based mortality estimates have been used for years. But, with the advent of medical underwriting, this no longer needs to be true.
Assessing scheme members’ actual health provides a far closer prediction of longevity; one which significantly affects the overall scheme value. Medical underwriting studies typically find that previous valuations can be 5% to 10% higher than needed.
Medical underwriting isn’t revolutionary. It’s regulator-approved and has won industry awards. It’s been used on thousands of pension schemes. It has enabled billions of pounds’ worth of pensions to be revalued empirically, saving companies millions – and significantly reducing pension-based risk.
The company delivering these improvements is MorganAsh.
MorganAsh replaces assumptions with evidence – authentic personal health information, gathered sensitively and securely by medical professionals.
Every medically underwritten mortality study undertaken by MorganAsh has led to a scheme revaluation – 99% of which were lower than previous estimates.
Medically underwritten mortality studies aren’t rocket science. But they are smart.
Medically underwritten mortality studies from MorganAsh.