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Life expectancy improvement continues to slow

Pension-Pensioner-Elderly-Older-People-700x450.jpgThe recent slowdown in life expectancy gains has moved from a blip to a trend according to data analysis from the Continuous Mortality Investigation.

The data seen by the Financial Times shows life expectancy for men and women in England and Wales, which improved in the first decade since 2000, has begun to fall away.

Life expectancy improvements for the period 2011-2017 were considerably lower than any other recent six-year period.

The life expectancy for a 65-year-old at the beginning of this year was roughly two months shorter, for both males and females, compared to 2016.

These developments are important as actuaries previously thought that the decline in mortality improvements since 2010 was a blip.

Now the data from the Continuous Mortality Investigation 2017 shows life expectancies at age 65 for males and females were 22.1 years and 24 years as at 1 January 2018.

This is two months shorter when compared to 2016 data.

Compared to 2014 data, life expectancies at age 65 for males and females are 10 months and 12 months shorter.

The Continuous Mortality Investigation is a private company owned by the Institute and Faculty of Actuaries.

Former shadow pensions minister Gregg McClymont has written that an increase in UK death statistics is concerning for longevity models as the pensions industry relies on them so much.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Can we therefore expect further improvement in annuity rates. For those over 65 annuities are starting to look ever more attractive against drawdown. With a possible further rise in interest rates are we going to see a decline in drawdown? Or will people be more concerned with trashing the cash than securing a decent income in retirement>?

  2. Not, so much for well-heeled clients, as they’re keeping the longevity increases going

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