Pension funds of FTSE350 companies have raised the life expectancy assumptions of their scheme members by an average of half a year, equating to an average increase of 2%, or ã8bn (â¬10bn), on their combined liabilities, according to new research.
The report by actuarial consultant Mercer looked at pension funding positions for FTSE350 companies. It also took a snapshot of the mortality assumptions for 30 companies grouped by industry sector. Of these companies, two reduced longevity assumptions for some of their members while 12 increased them substantially.
