--- title: Insights | Punter Southall | Life is shorter description: Richard Jones, Managing Director of Punter Southall, Fat not fags? image: https://www.puntersouthall.com/hubfs/life-5304453_1280.jpg --- - [ Our services ](https://www.puntersouthall.com/our-services) - [ Pensions ](https://www.puntersouthall.com/pensions) - [ Defined benefit ](https://www.puntersouthall.com/defined-benefits) - [ Defined contribution ](https://www.puntersouthall.com/pensions#defined-contribution) - [ SIPP & SSAS ](https://www.puntersouthall.com/pensions#self-invested-pensions) - [ Expert witness ](https://www.puntersouthall.com/expert-witness) - [ Analytics ](https://www.puntersouthall.com/analytics) - [ Numbers for lawyers ](https://www.puntersouthall.com/analytics#numbers-for-lawyers) - [ Data compliance ](https://www.puntersouthall.com/analytics#data-compliance-for-data-confidence) - [ Legal ](https://puntersouthall.law/) - [ Employee benefits ](https://www.puntersouthall.com/service-update-apr-24) - [ Financial planning ](https://www.puntersouthall.com/service-update-apr-24) - [ Insights ](https://www.puntersouthall.com/insights) - [ Blogs ](https://www.puntersouthall.com/insights) - [ Our story ](https://www.puntersouthall.com/our-story) - [ People & culture ](https://www.puntersouthall.com/people-culture) - [ Our people ](https://www.puntersouthall.com/staff-directory) - [ Awards ](https://www.puntersouthall.com/awards) - [ Careers ](https://www.puntersouthall.com/careers) - [ Contact us ](https://www.puntersouthall.com/contact) [![Punter Southall - Animated icon](https://www.puntersouthall.com/hubfs/raw_assets/public/punter-southall-hc/library/images/client/logos/punter_southall_anim_logo.gif) ![Punter Southall - Text logo](https://www.puntersouthall.com/hubfs/raw_assets/public/punter-southall-hc/library/images/client/logos/punter_southall_text_logo.svg) ](https://www.puntersouthall.com/) ** ** ** - [ Our services ** ](https://www.puntersouthall.com/our-services) - [ Pensions ** ](https://www.puntersouthall.com/pensions) - [ Defined benefit ](https://www.puntersouthall.com/defined-benefits) - [ Defined contribution ](https://www.puntersouthall.com/pensions#defined-contribution) - [ SIPP & SSAS ](https://www.puntersouthall.com/pensions#self-invested-pensions) - [ Expert witness ](https://www.puntersouthall.com/expert-witness) - [ Analytics ** ](https://www.puntersouthall.com/analytics) - [ Numbers for lawyers ](https://www.puntersouthall.com/analytics#numbers-for-lawyers) - [ Data compliance ](https://www.puntersouthall.com/analytics#data-compliance-for-data-confidence) - [ Legal ** ](https://puntersouthall.law/) - [ Employee benefits ** ](https://www.puntersouthall.com/service-update-apr-24) - [ Financial planning ](https://www.puntersouthall.com/service-update-apr-24) - [ Insights ** ](https://www.puntersouthall.com/insights) - [ Blogs ** ](https://www.puntersouthall.com/insights) - [ Our story ](https://www.puntersouthall.com/our-story) - [ People & culture ** ](https://www.puntersouthall.com/people-culture) - [ Our people ** ](https://www.puntersouthall.com/staff-directory) - [ Awards ** ](https://www.puntersouthall.com/awards) - [ Careers ** ](https://www.puntersouthall.com/careers) - [ Contact us ](https://www.puntersouthall.com/contact) - ** ** DB Pensions 4 November 2025 [** Back ](https://www.puntersouthall.com/insights/) **Author:** Chris Parlour # Life is shorter   The formal triennial actuarial valuation process has become far less important to the financial futures of most schemes and sponsors. And whilst there are new rules, they have been a very long-time coming, so were well trailed and are ultimately not that different to the old regime, which had been in place for almost 20 years. Moreover, the dramatic change in market conditions in the lead up to and particularly following the ‘gilts crisis’ has reduced the importance attaching to some of the actuarial assumptions being made. In the higher interest rate environment that we currently find ourselves in, valuations discount future benefit obligations with reference to those higher rates of interest. This dramatically reduces the assessed cost of providing future pension payments. However, it has a far greater impact on the value placed on payments further into the future than it does on those that are due in the near term. For a typical scheme, payments due in the next 10 years could now account for around 50% of its liabilities. Just a few years ago, when real yields were negative, more than two-thirds of the liability of a typical scheme related to benefits payable more than 10 years hence. As a result, some actuarial assumptions have become significantly less material to the valuation than they used to be. For example, in setting the mortality assumption, the importance of the long-term rate of improvement has been dampened down considerably. When yields hit record lows in December 2021, using a long-term rate of 1.5% as opposed to 1% would have increased the value placed on an inflation linked pension payable from age 65 by nearly 2.5%. Under current market conditions, the impact would be less than 1%. This may mean agonising over mortality assumptions and whether they are sufficiently prudent could be consigned to history, as long as interest rates don’t revert to the lows of the previous decade or so!    ----- We hope you've found this article of interest. If you'd like to discuss it, or any other matters where we may be able to assist you, please contact Chris Parlour on Chris.Parlour@puntersouthall.com[mailto:david.rankin@puntersouthallgroup.com](mailto:david.rankin@puntersouthallgroup.com)   Share [** ](mailto:?subject=Life%20is%20shorter&body=https://www.puntersouthall.com/insights/insights-punter-southall-life-is-shorter) [** ](http://twitter.com/intent/tweet?text=Life%20is%20shorter&url=https://www.puntersouthall.com/insights/insights-punter-southall-life-is-shorter) [** ](http://www.linkedin.com/shareArticle?mini=true&url=https://www.puntersouthall.com/insights/insights-punter-southall-life-is-shorter) [** ](https://www.facebook.com/sharer/sharer.php?u=https://www.puntersouthall.com/insights/insights-punter-southall-life-is-shorter) [** Back ](https://www.puntersouthall.com/insights/) ### Get in touch today At Punter Southall, we have a team of highly skilled pensions, risk, compliance and legal experts with deep in-house practical experience. Get in touch if you would like a friendly chat with one of us. Get in touch** - LATEST UPDATES ## You may also be interested in [DB Pensions ](https://www.puntersouthall.com/insights/insights-punter-southall-pension-costs-seem-set-to-rise) - 22 October 2025 [Pension costs seem set to rise….](https://www.puntersouthall.com/insights/insights-punter-southall-pension-costs-seem-set-to-rise) [Read article](https://www.puntersouthall.com/insights/insights-punter-southall-pension-costs-seem-set-to-rise) [DB Pensions ](https://www.puntersouthall.com/insights/insights-punter-southall-tuff-one-for-smiths-news-to-take) - 3 December 2025 [Tuff one for Smiths News (to take)](https://www.puntersouthall.com/insights/insights-punter-southall-tuff-one-for-smiths-news-to-take) [Read article](https://www.puntersouthall.com/insights/insights-punter-southall-tuff-one-for-smiths-news-to-take) [DB Pensions ](https://www.puntersouthall.com/insights/insights-punter-southall-the-future-of-the-ppf) - 8 October 2025 [The Future of the PPF](https://www.puntersouthall.com/insights/insights-punter-southall-the-future-of-the-ppf) [Read article](https://www.puntersouthall.com/insights/insights-punter-southall-the-future-of-the-ppf) - ###### INSIGHTS #### Subscribe to updates Where we share what we’re thinking about and what conclusions can be drawn on everything from the work we do to the world around us. 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It is not intended to be construed as a solicitation for the sale of any particular investment or as investment advice and does not have regard to the specific investment objectives, financial situation and particular needs of any person by whom it is read. Tax treatment will depend upon individual circumstances and may be subject to change in the future. Please also note that the value of investments, and /or the income from them, can fall as well as rise so you may get back less than you invested. The past performance of an investment should not be relied upon as a guide to its future performance. Comment and opinion on this website is based on tax year figures in the year written and there is no updating to the current tax year. Punter Southall Group is a trading name of Punter Southall Group Limited. Registered office: 11 Strand, London WC2N 5HR. Registered in England and Wales No. 4096788. 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Punter Southall SIPP Limited (FRN: 189480) and Punter Southall Defined Contribution Consulting Limited (FRN: 121328) are authorised and regulated by the Financial Conduct Authority. ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Chris Parlour", "url" : "https://www.puntersouthall.com/insights/author/chris-parlour" }, "dateModified" : "2025-11-05T16:14:12.890Z", "datePublished" : "2025-11-04T13:47:30.000Z", "headline" : "Insights | Punter Southall | Life is shorter", "image" : [ "https://www.puntersouthall.com/hubfs/life-5304453_1280.jpg" ], "mainEntityOfPage" : { "@id" : "https://www.puntersouthall.com/insights/insights-punter-southall-life-is-shorter", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.puntersouthall.com/hubfs/Logos/punter-southall-horizontal-RGB.svg" }, "name" : "Punter Southall" } } ```