Dr Con Keating called for defined benefit schemes to stop wasting money on Liability Driven Investment within in his talk at the latest meeting of The-Pensions-Net-Work. In his wide ranging talk based on his new paper “Don’t stop believing” Con proposed that the only liability for schemes to worry about was the likelihood of the scheme sponsor becoming insolvent, and that could easily be insured, there was simply no need for expensive liability matching.
The issues associated with increasing longevity were a recurring theme amongst the speakers at the latest meeting of The-Pensions-Net-Work. As usual there was a strong line-up of speakers including Robert Reid of the Ideas Lab, Steve Mingle of Isinglass Consulting, Con Keating from the Brighton Rock Group, David Sinclair from the International Longevity Centre, Andrew Cheseldine of Lane, Clark & Peacock and Chris O’Brien from Nottingham University Business School.
David Sinclair gave a fascinating insight into the likely impact half a million prospective centenarians by 2060. The other speakers all made reference to the increasing longevity in their talks which covered a wide range of subjects. Andy Cheseldine also mentioned the increasing impact for members of DC schemes in his talk which looked at the way in which retirement products will be distributed in a consultancy charging world. Robert Reid in an intriguing commentary on “Simples- compare the pensions market” stressed the need for much better education of the population on the consequences of living longer.
Commenting on the meeting Chair of The-Pensions-Net-Work John Moret said: “I found it fascinating that in such a wide range of talks covering so many areas of the pensions marketplace the issues associated with increasing longevity were seen as so significant by so many of our expert speakers. It was a wakeup call for our industry and for government and it once again highlighted that this issue is not going to go away. It poses enormous challenges not just for the pensions industry but for society as a whole. The time bomb is ticking and the need for greater awareness, education and importantly action is clear. I am sure it will be a subject that we will return to in future meetings.”
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