One in six will retire with no pension

Posted on 12 April 2012 | Leave a comment

One in 6 people who are planning on retiring this year have no personal pension and will depend soley on their state pension to fund their retirement. The study by Prudential’s Class of 2012 study also shows that 20 per cent of women retiring in 2012 will depend on the State Pension compared with just 8 per cent of men. As of Friday 6th April 2012 the state pension payment rose to £107.45 a week, for the average person State Pensions will make up 34 per cent of total income, 35 per cent will come from company pensions and the remaining 30 per cent will be a mixture of savings and investments as well as personal pension savings. Vince Smith-Hughes, retirement income expert at Prudential, said: “For far too many people, the State Pension has become the default income option in retirement. Even those who have some private provisions depend so heavily on the State that it makes up a third of their retirement income. “If people want to maintain their standard of living in retirement it is important that they start to save as much as possible as early as possible, and the vast majority should join company pension schemes where possible. Seeking early advice from a financial adviser should also be a prerequisite to helping people achieve the level of retirement income they want and need.”

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Posted in news, Pensions

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Virtual Library for Actuaries

Posted on 3 April 2012 | Leave a comment

As a member of the life committees I’m delighted to introduce you to a new service to members. They have developed a virtual library of life insurance papers. The library (http://www.actuaries.org/index.cfm?DSP=LIFE&ACT=LIBRARY&LANG=EN) currently contains over 40 papers, which have appeared in past issues of the ASTIN Bulletin – The Journal of the IAA and Insurance: Mathematics and Economics. Papers from past Life Section colloquia will also be added to the library. The library provides the following information for each paper: title, author, source, year of publication and abstract. Additionally, we have included a filter option which allow viewers to limit the display to various categories. The library also includes a form allowing members to suggest papers to be added to the library. A member of the Life Section Committee has been appointed to review potential submissions for inclusion in the library. Please make sure that you are logged into the IAA Website as a member in order for your access rights to be authenticated.

Geraldine

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Posted in Actuarial Sectors, Life, news

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Actuaries warn that pension costs to rise

Posted on 25 March 2012 | Leave a comment

The BBC has reported that the mortality rate in England and Wales improved again last year.  This could have a knock-on effect on pensions, actuaries have suggested. The number of deaths fell to 484,000, according to official figures.

After examining the figures the Actuarial Profession said the death rate fell by 4% – down from an average annual drop of 2.4% in the previous decade.

Falling death rates would inevitably make it more expensive to fund pension schemes. Last year was the third in a row in which deaths had been below 500,000.

The figures – from the Office for National Statistics (ONS) – suggest that 20,000 fewer people died in 2011 than would have done in previous years.

Punter Southall’s head of mortality research, Ross Matthews, said: “If the 2011 fall in mortality rates continued, a man of 65 retiring today could expect to live to 91, three years longer than the typical current estimate of 88.”

“A 45-year-old would live to 95, seven years longer. This equates to an increase of up to 15% on pension scheme liabilities, potentially driving deficits by up to 50%”.

But Gordon Sharp, of the Actuarial Profession, warned that death rates could be volatile from year to year, and said that not too much should be read into one year’s provisional improvement.

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Posted in Actuarial Sectors, Life, news, Pensions, UK

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The End of Growth – a book of interest to actuaries everywhere?

Posted on 13 March 2012 | Leave a comment

The End of Growth: Adapting to Our New Economic Reality – an outline.

Economists insist that recovery is at hand. Yet, unemployment remains high, real estate values continue to sink, and governments stagger under record deficits. The End of Growth proposes a startling diagnosis: humanity has reached a fundamental turning point in our economic history. The expansionary trajectory of industrial civilization is colliding with non-negotiable natural limits.

Richard Heinberg’s latest landmark work goes to the heart of the ongoing financial crisis, explaining how and why it occurred, and what we must do to avert the worst potential outcomes. Written in an engaging, highly readable style, it shows why growth is being blocked by three factors:

•Resource depletion,
•Environmental impacts, and
•Crushing levels of debt.

These converging limits will force us to re-evaluate cherished economic theories and to reinvent money and commerce.

The End of Growth describes what policymakers, communities, and families can do to build a new economy that operates within Earth’s budget of energy and resources. We can thrive during the transition if we set goals that promote human and environmental well-being, rather than continuing to pursue the now-unattainable prize of ever-expanding GDP.

Have you read this book yet?  What is your opinion?

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Posted in news

Annuities code gains qualified welcome from Mercer

Posted on 12 March 2012 | Leave a comment

The new insurance industry code of conduct for annuities is a step in the right direction. However, more needs to be done to encourage pension scheme members to shop around for the best deal, according to Paul Marco, head of defined contributions at Mercer retirment business in the UK.

In an interview with The Actuary Magazine he said that ‘most people didn’t know where to start when shopping around for annuities and as such were likely to just stay with their current provider. The code tells providers not to rely on customer inertia, however this is incredibly difficult to police. By offering members a range of market-based quotes up front, and not just a quote from the sitting insurer, the member’s chances of purchasing a far better annuity are greatly improved.’

In particular, Mercer said that, as well as encouraging members to shop around, customers should also be told that quotes from the sitting insurer are unlikely to be the best available in the market. ‘This needs to be prominent, rather than tucked away at the end or buried in the small print,’ he said.

‘Although the code itself is a positive development it is very disappointing that compliance with it is not being made mandatory earlier than March 2013. In the meantime 1000’s of retirees will be losing £100’s or £1000’s of pounds a year in income for the rest of their lives’

Finally Mercer called on the government to use the introduction of auto-enrolment later in the year as an opportunity to look at making the provision of an annuity broking service a key aspect of what a good workplace pension plan offers.

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Posted in news, Pensions, UK

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Actuarial News – Poker event run by SIAS on March 22nd

Posted on 10 March 2012 | Leave a comment

The SIAS are running a Poker Night onThursday 22 March 2012 at 18:00 taking place at The Loose Cannon Club, 13-16 Allhallows Lane

To bluff or not to bluff… that is the question!

After the success of last year’s event, SIAS are hosting another poker night on 22nd March. No experience needed. If you’re a beginner then you can take part in the practice sessions beforehand, and if you’re unlucky in the tournament then you can carry on the fun playing on other tables.

There will be cash prizes for everyone who makes it to the last table. Email social@sias.org.uk to reserve your place. Places are limited.

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Posted in Actuarial Societies, Events

Karl Schriek named as the 1000th to earn prestigious risk management credential

Posted on 6 March 2012 | Leave a comment

Congratulations from all of us at Gaaps Actuarial Recruitment to Karl Schriek has become the 1000th person to earn the prestigious Chartered Enterprise Risk Actuary (CERA) credential.

Schriek is a Fellow of the Actuarial Society of South Africa and an actuary at General Reinsurance Africa. Schriek said, “I am excited about what the CERA qualification has to offer. It is a truly robust risk management credential and CERAs are well positioned to play a leading role in the future of risk management.”

The CERA Global Association grants actuarial organisations the right to award the global CERA credential to individual actuaries who have satisfied the requisite education and training requirements.

“CERAs develop effective quality solutions for the risks and opportunities of their clients. They are uniquely qualified to address all types of risk, including financial, operational and strategic risks,” said Fred Rowley, Chairperson of the CERA Global Association. “Businesses that rely on CERAs can make smarter, more confident decisions related to complex risk management challenges affecting business and society,” Rowley said.

The CERA was initially established in the United States by the Society of Actuaries in 2007. Currently organisations in Australia, Canada, the Netherlands, South Africa, United Kingdom and the US are authorised to award the CERA credential.

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Posted in Actuarial Exams, Actuarial Qualifications, Actuarial Societies, South Africa

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