Tuesday, April 22, 2014
One month after Britain announced the overhaul of its private pension rules that allows retirees to choose a lump-sum payment rather than buying an annuity, retirees could now be issued guidance on how long they are likely to live.
Pensions Minister Steve Webb, explains, “Gender, age and perhaps asking one or two basic questions, like whether you’ve smoked or not, should be enough to determine how long, on average someone is likely to live.” Webb further stated that having an idea of life expectancy would assist retirees holding private pensions to manage their finances more efficiently. The objective is to help people make the right decisions. “Estimates of life expectancy have long been included in calculating annuities, but as retirees are given greater liberties in how and when to spend their pensions savings, they ought to be made more aware of it."
See Katrin Benhold, How Near Is the End? Britain May Tell Retirees, The New York Times, Apr. 17, 2014.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.