Within the Longevity Risk (Annuity) Insight, added ‘Calculation Method’ and 'Annuity Rate’ fields. This allows you to specify an annuity rate from within the Insight.
Before
The Insight default was 'Assumed Interest rate' from Plan Settings with no option to change to a specified rate within the insight.
After
You can now choose between 'Specified Annuity Rate' and 'Assumed Interest Rate'.
Use Specified Annuity Rate to enter the annuity rate yourself. This percentage is used to calculate the annuity at time of annuitisation.
The other option allows the software to 'derive' an annuity rate by using an Assumed Interest Rate. The actual annuity rate will be different from the entered assumed interest rate and depends on the client's age in the plan.
More explanation of these two options is here: Options for calculating future annuity payments
Go to Year View - Pensions tab at the retirement event to check the annuity amount.
- Both new inputs are visible in the Longevity Risk insight
- In generated what-if plan, newly created annuity model should have the inputs as set on the insight