Influential Swiss newspaper NZZ has a good article (in German)
about how Swiss Pensionskassen
manage their longevity risks, i.e. not very much
. The article claims that due to the usage of backward looking mortality tables, the longevity of members is systematically underestimated in a world of continuously rising longevity. Unfortunately the article does not take into consideration the experience in more advanced countries such as the UK. This is a valid issue which receives too little attention because of a rigid regulatory environment in Switzerland where many important parameters are politically determined with little consideration to factual developments.
Labels: longevity, Switzerland