Longevity: Difference between revisions
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imported>Doug Williamson m (Spacing 22/8/13) |
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''Pensions''. | ''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'. | |||
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. | 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'. | 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. | 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. | So as mortality rates decrease, average life expectancy increases accordingly. | ||
== See also == | == See also == | ||
* [[Mortality]] | * [[Mortality]] | ||
* [[Pension liabilities]] | * [[Pension liabilities]] | ||
Revision as of 10:45, 22 August 2013
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.
