Life companies need to do more to help consumers estimate their longevity following the recent pension reforms says OAC Actuaries and Consultants. With consumers now free to access their pension pot at fifty five, they will need to be more aware of how long they are likely to live, and life companies, who are used to making similar predictions for insurance policy premiums, should view this as an opportunity to help consumers.
The changes to pensions will place a greater burden on consumers who are likely to need help assessing how long they will live after retirement. The Life industry is ideally placed to provide consumers with the tools and assistance necessary for them to make well-informed choices about their future. Financial modelling solutions such as OAC’s Mo.net software can make a huge difference to the effectiveness of retirement planning by helping consumers navigate the confusing world of pensions, supported by relevant web-based financial planning tools provided by Life companies.
The changes should be viewed as an opportunity to restore consumer trust for Life firms who have been hit by a number of challenges over recent years including poor annuity rates, disappointing performance and mis-selling scandals.
Nigel Gardner, head of global sales for Mo.net, at OAC comments on the need for life companies to assist consumers:
“Life companies have the opportunity to show consumers the benefits of their experience. Individuals will need to be presented with an analysis of how long they are likely to live for so that they can plan for their retirement and life companies can help tremendously with this. There is a real opportunity for these companies to show consumers the value of their work especially as competition in the ‘at retirement’ space heats up.”
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