Manage your «longevity risk» Pension plans can
use average life expectancies in their calculations because the higher payouts to exceptionally long - lived plan members are offset by the shorter payouts to those who die younger.
Not exact matches
Over the period 1980 to 2012, unemployment rose from just 6.4 % to 27.4 % in spite of consistent GDP growth rate
averaging more than 7.5 % and by 2016, 33.6 % (
using NBS old measure); Human Development Index (HDI) has risen only modestly between 1990 (0.411) and 2014 (0.514); and
average life expectancy in spite of our enormous resources remains stuck at 52.9 years in 2015 while the equivalent figure in the developed world
averages over 70 years.
(
Average life expectancy is a broader measure than maximum reported age at death, which the study authors
used.)
A planner would
use historical performance
averages to project future portfolio values and automatic calculations for variables such as inflation and
life expectancy.
Make a «base case» scenario
using «
average»
life expectancy, but have some contingency plans at the ready.
The
average life expectancy of the Lurcher breed varies greatly depending on the breeds
used, but the
average lifespan is generally between 12 and 15 years.
With the
use of these mortality tables, the insurance company can also determine, on the
average, the
life expectancy of the whole group.
While this may seem like a risk to the insurance companies, they take into account where you
live, your age and income, and other factors which are then compared to actuarial tables
used to calculate
average life expectancy.