Assessment of the potential longevity risk in the standard mortality tables

This chapter assesses the potential longevity risk implicit in the standard mortality tables used by pension funds and annuity providers in each country. It provides a detailed analysis on which the conclusions presented in regarding the potential shortfall of the standard mortality tables are based. Results of the mortality projection model outputs are compared to historical population experience as well as to the life expectancy and annuity values given by the standard mortality tables. The potential shortfall of provisions from using each standard mortality table is calculated based on each of the mortality models and across a range of ages. Where available, the potential impact of socio-economic differences on the annuity value is also shown.