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Press Comment: Life expectancy increases wane, but another rapid rise remains on the cards

07/03/2019

If you are covering the Continuous Mortality Investigation’s statistics released today, which show that while mortality rates will continue to improve, the rates of mortality improvement over the next decade will be much slower than previously seen, please see the following comment from Ian Browne, pensions expert at Quilter:

Ian Browne"The Continuous Mortality Investigation (CMI) has today released its mortality projections model for 2018. While the good news is that rates will continue to improve slightly, they estimate that the high rates of improvement seen in the first decade of this century are unlikely to repeated, at least in the short-term.

"When the CMI compared its latest data with previous years, it found that life expectancies at age 65 are around five months lower for both males and females, at 19.8 years and 22.4 years, respectively. On the face of it, this decline in improvements doesn’t seem to pair up with the rising pension age, which is due to rise to 67 by 2028 and 68 by 2046 meaning people have less time to enjoy their pension. However, in reality these increases are in actual fact a case of the state pension age playing catch up with advances that have already happened.

"Despite these statics painting a less rosy picture than some might want, we should not be under the illusion that we are going to start seeing a drastic decline in how long most live. In fact, historical data shows us that life expectancy does not increase in a linear fashion but rather goes in bursts that correspond with medical advancements.

"It is therefore prudent for people to plan their finances around the very realistic possibility of living to 100. Couples should also be mindful that whoever outlives the other is not left in poverty at a time when they may not be able to get an income from elsewhere because of their age"

For more information contact

Alex Berry023 8072 626007741 151931alex.berry@quilter.com

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £114.9 billion in investments (as at 31 March 2019).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

  • The Multi-asset business is now Quilter Investors
  • Intrinsic to Quilter Financial Planning
  • The private client advisers business is now Quilter Private Client Advisers
  • The UK Platform to Quilter Wealth Solutions
  • The International business to Quilter International
  • The Heritage life assurance business to Quilter Life Assurance
  • Quilter Cheviot will retain its name.

 

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.