We analyse the sensitivity of pensioner and annuitant liability values to mortality rates and mortality improvements at different ages to assess which ages matter most.
The results show where we should focus our efforts, and may be surprising.
In particular, typical liabilities are most sensitive to mortality improvements for ages 85 to 95 – an age range characterised by less reliable data.
Our Longevity services team produces regular commentaries on topical issues in the management and transfer of longevity risk known as 'Spotlight on Longevity'.
To obtain copies of Spotlights, or for more information, please contact the author.