Short(ish) explanation of smoothed AE and how it differs from with-profits

Colm Fagan

Registered User
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Even some of my best friends admit that they don’t understand why I'm saying that the smoothed approach to AE pensions delivers double the value for money of the scheme proposed by the DSP and that it could save Ireland Inc over €1 billion a year.
Reading what I’ve written so far is too much like hard work!
Help is at hand! My article for the UK's Actuary magazine gives a brief – and hopefully clear - explanation of my proposal, and how it deliver the extra value.
The article also addresses a more sophisticated criticism, especially from some of my fellow actuaries, that what I'm proposing is just with-profits in disguise. It explains how the smoothed approach to AE “keeps the good parts of with-profits and removes the bad.”
 
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