XPS Accounting Tracker
Our interactive graphs below allow you to compare your key accounting assumptions to those seen across all of our client in our ongoing survey.
We have shown the range of discount rate, RPI inflation and life expectancy assumptions seen across over 120 of our clients in our accounting survey over the last year.
Please select the accounting date that you are interested in and the market related survey results will be rebased to your chosen date for comparision.
Use your cursor to hover over the markers to see how your scheme compares, and click to select your chosen assumptions.
Our accounting survey includes much more detail on accounting assumptions and methodology, including the individual parameters used to set life expectancy assumption and approaches to GMP equilisation. Please get in touch if you are interested in bespoke benchmarking your scheme against our more in depth data.
The following chart displays the range of discount rate assumptions adopted by clients in our survey. Discount rates are sorted by the corresponding duration of the each scheme. Points on the graph that are darker in colour indicates a greater number of clients adopting this assumption at the given duration. We have also included a "line of best fit" which shows the trend of discount rates at each duration.
The following graph displays the range of RPI inflation assumptions adopted the clientsin our survey. The RPI inflation assumptions shown are single equivalent rates after allowing for any inflation risk premia that have been applied by each client (these premia vary from client to client). The RPI inflation assumptions are sorted by the corresponding duration of the each scheme. Points on the graph that are darker in colour indicates a greater number of clients adopting this assumption at the given duration. We have also included a "line of best fit" which shows the trend of RPI inflation assumptions at each duration.
Life expectancy from age 65
The key demographic assumption that drives the value of pensions obligations on a company’s balance sheet is future life expectancy. The chart below shows the range of life expectancy assumptions from 65 adopted by clients in our survey. These are shown for:
- a current male and female pensioner aged 65 at the date of the survey. This illustrates the current assumed life expectancy, and
- the projected life expectancy at age 65 for a younger male and female non-pensioner currently aged 45. This is to illustrate the combined impact of the current assumed life expectancy along with the future expected life expectancy improvements
Source: XPS Pensions Group