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Pension life expectancy up
Many UK companies now assume future male pensioners will live until the age of 87, an increase of one year since 2006, according to research by accountancy firm KPMG.
The assumed life expectancy has risen steadily from 83 in 2004, but KPMG warned that the Pensions Regulator wants employers and pension schemes to work on the basis that men will reach 89.
It is estimated that every additional year adds 3% onto the cost of running a pension but the 5% fall in the cost of corporate bonds over the last year as a result of the credit crunch would more than cover this increase.
KPMG added that very few companies were currently complying with the Pensions Regulator's guidance.
Post Date: May 23rd, 2008