50 pension schemes tackle longevity risk head-on

In just 11 weeks since its launch, Club Vita, the UK's first ‘longevity comparison club', has enrolled 50 new occupational pension schemes. With combined assets of some £90 billion, Club Vita members represent around 10% of all UK fund assets.

And the benefits of joining Club Vita are proving attractive to a wide spectrum of pension schemes. Members include large, medium and small private and public sector schemes throughout the UK.

Club Vita's exclusive membership arrangement gives subscribers access to a rich pool of data, providing them with the most precise longevity analysis in the market to date. Schemes are signing up for the service in order to address the perennial issue of inaccurate longevity calculations; inaccuracies which can cost schemes millions of pounds each year.

Nick Flint, Chief Executive of Club Vita, said: "As pension schemes tackle the numerous challenges posed by recession, trustees are increasingly seeking ways to cut costs and improve efficiency. Falling interest rates mean that longevity risk is continuing to get more and more expensive and, whilst trustees can do little to change this, the rush to join Club Vita shows their keenness to monitor and manage the risk more effectively.

"We're seeing a clear trend: schemes are moving away from ‘traditional' triennial valuations and related longevity assessment. They're looking to gain a comprehensive understanding of the impact of longevity risk and monitor it annually as part of a risk management framework.

"Schemes see the value for money offered by Club Vita; annual membership costs are minimal in comparison with the millions schemes could save through their participation."