Longevity

Pensions.

A measure of the life expectancy of current and future pensioners and other beneficiaries of a pension scheme.

From the perspective of the pensions provider, there is therefore a related 'longevity risk'.

Longevity risk refers to the increased cost of providing pensions, resulting from improvements in health and increases in average life expectancy.

A closely related term in pensions valuation and management is 'mortality'.

Mortality refers to the relative proportions of groups of pension scheme members who are expected to die in a given period.

So as mortality rates decrease, average life expectancy increases accordingly.

See also

• Longevity swap
• Mortality
• Pension liabilities