Fri 18 Feb 2022 - What will happen to DC pension savers who see life annuities as poor VFM but still want an income for life? Pooled annuity funds could offer them a decent lifetime income while reducing significantly the complex choices and risk inherent in income drawdown. They could be the next generation of CDC pension schemes, slotting into the existing DC framework as a post-retirement option.
Results on how well a pooled annuity fund could pay out benefits, before any guarantees or risk mitigation actions are added, are presented. The results assume an open fund with a homogeneous membership. The ability of these funds to provide an integrated bequest upon death is also discussed.
John is Chairperson of the Scottish Financial Risk Academy Group, a collaborative venture between industry and academia on a range of risk topics, including climate and cyber risks. He is also Governor of the Royal Conservatoire of Scotland. He recently served as the President of the Institute and Faculty of Actuaries (2019-20), the professional body for actuaries.
He has innovated with technology throughout his career to create novel insurance propositions. He has championed the greater adoption of data science and artificial intelligence by the actuarial profession.
Previously, John held several senior leadership roles in the long-term savings industry. These included: Partner at Hymans Robertson (2014-20), Managing Director at NEST, Customer & Proposition (2013 – 2014), Marketing Director at Lloyds Banking Group (2007 – 2012) and various director roles at Standard Life (1994-2007).
John holds a bachelor’s degree and a doctorate from the University of Glasgow as well as post-graduate diploma from Heriot Watt University.
Catherine Donnelly is a Professor in the Department of Actuarial Mathematics and Statistics at Heriot-Watt University and is Director of the Risk Insight Lab. Prof. Donnelly is a qualified actuary who has previously worked in the pensions industry. She has a PhD from the University of Waterloo, Canada, an MSc from the University of Oxford and a MA from the University of Cambridge. Her research interests lie in pensions and life insurance, and she has published widely in these areas. She was a member of the USS Joint Expert Panel in 2018. Prof. Donnelly has a keen interest in developing workable solutions to improve people’s financial situation in retirement.