Pensions
A pension promise can continue for decades after retirement.
A LIX market reference can sit alongside the institution’s own data and models. Its relevance depends on the population, horizon and decision.
Keep the model. Add a live market view.
When medicine, demographics or a major health event changes expectations, LIX is designed to let market participants express those views in prices—and let institutions see that repricing as it happens.
How this business works
Defined-benefit pensions promise future income to workers and retirees. The cost of that promise depends in part on how long payments continue. A small change in expected survival, applied across a large plan, can change the value and duration of obligations and influence funding decisions for years.
How decisions are made today
Plans and sponsors use actuarial assumptions, participant data, investment assumptions and experience studies to value liabilities and set funding strategy. Those estimates influence contributions, asset allocation, risk transfer, accounting, finance, governance and—depending on the plan—regulatory or public reporting.
What changes when a live market exists
LIX can give pensions an external market reference for life-expectancy expectations and a potential market for transferring selected exposure. A plan can compare its assumptions with a price formed by insurers, reinsurers, banks, asset managers, hedge funds and other market participants rather than relying only on its own model or a bilateral quote.
A pension promise can be repriced when the world changes
A pension may make payments for decades. If a medical breakthrough changes expectations about survival, or a pandemic changes mortality, the economic value of those future payments can change. That can affect funding, asset allocation, risk management, accounting and decisions about transferring pension risk.
A liquid LIX market could let pension managers observe those changing expectations in real time, compare them with plan assumptions and potentially rebalance selected life-expectancy exposure. Instead of relying only on periodic assumption reviews, they gain a continuously updated market reference.
LIX is not asking this industry to replace the models, data or professional judgment it already trusts. The new idea is to add a market alongside them: a place where institutions and investors can trade expectations about human life expectancy and create an external price that can be observed, compared and—where useful—acted upon.
The services are different because the business is different.
LIX can meet this industry through the parts of the marketplace that matter to its actual work—not through a generic one-size-fits-all product pitch.