The Society of Actuaries (SOA) released updated mortality tables, which show that longevity in the United States is increasing.
“The updated tables and mortality improvement scale reflect that private pension plan participants are, in fact, living longer,” says Dale Hall, managing director of research for the SOA.
Among males age 65, overall longevity rose two years from age 84.6 in 2000 to age 86.6 in 2014. For women age 65, overall longevity rose 2.4 years from age 86.4 in 2000 to age 88.8 in 2014.
Based on the data, the SOA estimates there could be a 4% to 8% increase in private pension plan liability. This average cost impact will vary greatly according to the design and demographic profile of each plan.
Full versions of the 2014 Mortality Tables (RP-2014) and 2014 Mortality Improvement Scale (MP-2014) are available on the SOA website.
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