Longevity and Owner earnings: Difference between pages

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''Pensions''.
Owner earnings are defined briefly as:


A measure of the life expectancy of current and future pensioners and other beneficiaries of a pension scheme.
Earnings after tax;
ADD
Depreciation and certain other non-cash charges;
LESS
Capital expenditure requirements;
LESS
Working capital requirements.


From the perspective of the pensions provider, there is therefore a related 'longevity risk'.
== See also ==
 
* [[Earnings]]
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 ==
* [[Mortality]]
* [[Pension liabilities]]

Revision as of 14:20, 23 October 2012

Owner earnings are defined briefly as:

Earnings after tax; ADD Depreciation and certain other non-cash charges; LESS Capital expenditure requirements; LESS Working capital requirements.

See also