In Case You Missed It: The Impact of Poor Pension Data on Endgame Planning

Written by Dr Tim Drye | Mar 11, 2025 11:45:00 AM
 

At February’s PMI DB Pension Conference, Dr. Tim Drye of Mortality Manifest highlighted a pressing issue for Defined Benefit (DB) schemes: poor member data quality and its impact on endgame strategies. If you missed our talk, here are the key takeaways.

Full video available here.

Why Member Data Matters in Bulk Annuities

The bulk annuity market is growing rapidly, with 247 transactions worth £47.1bn in 2024, and expectations of 300+ transactions in 2025. Yet, poor data quality can disrupt deals, as insurers and schemes rely on accurate records to negotiate pricing and liabilities.

Common data issues include:

  • Over 50% of addresses are incorrect
  • Missing Spousal information for 45% of records
  • 3% of members recorded as alive despite being deceased
  • 30-40% of members have moved but not updated records
  • 70% of members missing an email address

Marriage, Longevity & Liability Projections

One of the biggest hidden risks in DB schemes is how marriage status affects longevity:

  • Married men live 2.1 years longer at 65; married women, 1.7 years
  • Liability for married men increases by 10 years, for married women by 7 years
  • A misclassified membership file could see a 30% swing in scheme valuations

What Can Be Done?

By improving member tracing, data validation, and spouse identification, schemes can:

  • Increase address accuracy to 90%
  • Trace spouse and understand relationship status for 85% of members
  • Understand members likely to be divorced
  • Trace Opt-in emails for members to support efficient write-outs

Data is the Foundation of Endgame Success

Deferred member pension data is often historical and unreliable, yet it plays a pivotal role when understanding future liabilities and scheme valuation. Investing in high-quality, up-to-date data can be the difference between a smooth buyout and costly surprises.

At Mortality Manifest, we specialize in accurate, automated, and efficient data solutions to ensure schemes and insurers are transaction-ready. Want to discuss how we can help? Get in touch today.

 
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