Effect of changes in assumptions used on the benefit obligations and on the 2018 annual defined benefit pension and post retirement costs.
| £m | ||||
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A 0.25% decrease in discount rate would have the following approximate effect: |
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Increase in annual pension cost |
29 | |||
|
Decrease in annual post-retirement benefits cost |
(1 | ) | ||
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Increase in pension obligation |
800 | |||
|
Increase in post-retirement benefits obligation |
41 | |||
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|
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A one year increase in life expectancy would have the following approximate effect: |
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Increase in annual pension cost |
20 | |||
|
Increase in annual post-retirement benefits cost |
2 | |||
|
Increase in pension obligation |
608 | |||
|
Increase in post-retirement benefits obligation |
39 | |||
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|
|
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A 1% increase in the rate of future healthcare inflation would have the following approximate effect: |
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Increase in annual post-retirement benefits cost |
2 | |||
|
Increase in post-retirement benefits obligation |
68 | |||
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|
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A 0.25% increase in inflation would have the following approximate effect: |
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Increase in annual pension cost |
19 | |||
|
Increase in pension obligation |
502 | |||
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