Longer lifespans change pension numbers

New mortality tables could mean rising service costs, actuarial liabilities for plan sponsors
By FEI Canada pensions committee
|Canadian HR Reporter|Last Updated: 02/10/2014

Over the past few decades, improved economies, better nutrition, medical advancements and healthier lifestyles have made it clear Canadians are living longer.

Global concern that current and future retirees will have longer lifespans than previously expected has led the Canadian Institute of Actuaries (CIA) to create the first-ever uniquely Canadian mortality tables. Historically, Canada has relied on mortality studies and tables from the United States.

Based on the proposed new mortality tables, the remaining average life expectancies for 60-year-old males and females has increased 8.3 years and 5.7 years respectively compared to those used in actuarial valuations made 35 years ago.