The missing link in understanding pensions risk
Once you fully understand your longevity risk, and how it compares to your other risks, you can make better decisions about how to manage it. This is where our unique tool, LCP Life Analytics, can help by measuring how much longevity risk you are running in your pension scheme.
How we can help
By analysing your pension scheme liabilities at an individual member level, LCP Life Analytics provides a tailored longevity ‘Value at Risk’ for your scheme. This longevity risk measure can be readily integrated with your investment risks to give you the complete picture of the risks faced by your scheme.
The longevity risk can be measured over any relevant time horizon (such as a 10 year journey plan) and at any risk level (eg a 1-in-20 year event).
Why LCP Life Analytics?
Developed with industry experts
LCP Life Analytics has been developed in conjunction with Richard Willets, Director of Longevity Analysis Ltd. Richard is a former chair of the CMI Projections Working Party and Executive Committee Member of the CMI. Richard has more than 15 years’ experience of analysing the mortality experience of DB pensioners, including for a number of leading UK bulk annuity providers.
What our clients say
LCP LifeAnalytics provided us with a way of measuring longevity risk that for the first time allowed us to analyse all our risks together, combining our own investment risk analysis with the longevity risk analysis from LCP LifeAnalytics.
LCP LifeAnalytics is a big step forward in improving understanding of longevity risk. It really helps trustees and employers efficiently allocate their risk-reduction budgets.
How we can help
We are market leaders at each stage of de-risking, including planning, investment strategy, transactional services and wind up.
We help sponsors of pension schemes understand and manage the costs and risks associated with supporting their current and legacy pension schemes as well as other employee benefits.
LCP Sonar, our risk profiling tool, benchmarks your scheme against other pension schemes, covering covenant, funding and investment risks. You can quickly see how your scheme’s risk profile compares to others and think about the key risks for you.
We help pension scheme trustees and sponsors to determine the ultimate destination for their scheme and help them put together a plan to get there, including how to effectively manage the risks they face along the way.