Two leading academics at the Business School have today launched influential reports commissioned by national organizations.
Professor Ian Tonks, acknowledged as one of the foremost pension’s experts in the UK, has co-authored a report entitled ‘The Money’s worth of Pension Annuities’, the conclusion of research undertaken on behalf of the Department for Work and Pensions.
The report examines a time series of pension annuity rates in the UK for 1994- 2007. It computes the money's worth of annuities, and finds that, on average, the money's worth over the sample period for 65-year old males has been 90 per cent, and for 65-year old females has been a similar, but slightly larger, 91 per cent. Taking into account load factors associated with annuity contracts and in comparison with other financial and insurance products, this implies that annuities are fairly priced.
The report can be found on the Department of Work and Pensions website
Dr Kevin McMeeking from the Department of Accounting has also just published a 90 page research report on competition, choice and governance in the UK audit market. This was initiated by the The Institute of Chartered Accountants of Scotland and can be found on their website by following this link www.icas.org.uk/mcmeeking
Date: 12 February 2009