Over the past 25 years, the mortality rates have been falling by an average of 3% yearly.
If this trend continues, and there is every reason to believe that it will, the life expectancy at 65 is expected to increase to 23.4 years for males and 27.5 years for females.
52% of males at 65 are expected to live to 85 years and 24% to 95 years. The proportion for females are 65% and 32% respectively.
Based on death rates Allow for decline in
in 2005 death rate, 3% yearly
75yrs 85yrs 95yrs 75yrs 85yrs 95yrs
Male 77% 39% 7% 80% 52% 24%
Female 87% 53% 11% 88% 65% 32%
Note: The calculations are based on the mortality rates taken from the population, with projection for future improvement in mortality.
Dear Mr. Tan,
ReplyDeleteThank You for educating us on these annuities issues. I have a question. For this investment of 150,000 dollars, at what time must we invest it in in order to get the quoted payouts? Do we have to invest it at an earlier age or at the same age of 65?
Thank You
Roger