Provides comparisons and trends

Setting a longevity assumption can be split into two parts – an estimate of current life expectancies (the baseline), and an estimate of how this might change in the future. VitaIndex,which all members of Club Vita receive, provides analysis that informs both parts of this process.

The baseline: VitaIndex compares and contrasts the longevity experience of your scheme with those of other members of ClubVita. You will also be able to contrast your experience with schemes within a peer group of similar schemes.

From VitaIndex you will learn about your scheme’s ‘demographic DNA’, the mix of longevity characteristics within your membership, which explains why the life expectancy of members of your scheme is different to others. Understanding the ‘DNA’ of your scheme will enable you to make well informed decisions as to the most appropriate baseline assumption to use for your scheme – both for current pensioners, but crucially also for future pensioners,who may have very different longevity characteristics.

Future changes: VitaIndex analyses the rich history of data collected within ClubVita. For the first time trustees will be able to understand the pattern of emerging longevity improvements in occupational pension schemes.

For example:

• Have occupational pension schemes experienced a ‘cohort effect’?; and
• If so which generation is the ‘golden generation’?
• Is this golden generation different for different groups of people (e.g. blue and white collar workers)?