Latest research shows Australian's are living longer | Accurium

The Australian Life Tables (ALTs) 2010-2012 have recently been released by the Australian Government Actuary in December 2014. These are updated every five years, with the next update due for release in 2019.
According to the ALTs 2010-2012, Australians born today are expected to live longer (on average) than those born five years earlier.

A commonly used measure for longevity is life expectancy. This measures the average number of years that would be lived by a representative group of individuals of the same age if they experienced mortality at given rates.

Based on the ALTs, if a child is born today, a female’s life expectancy is 84.3 years (an increase of 0.6 years compared to 2005-2007), and a male’s life expectancy is 80.1 years (an increase of 1.1 years compared to 2005-2007).

According to the 2010-2012 ALTs, a 65 year old man has a life expectancy of around 19.2 years to age 84.2 (an increase of 0.7 years compared to 2005-2007). A female of the same age has a life expectancy of 22.1 years to age 87.1 (an increase of 0.4 years compared to 2005-2007). However, there can be problems with using these tables to determine your life expectancy. The data is a snapshot in time and they do not take into account the fact that we are living longer due to improvements in mortality.

The mortality rates in the ALTs 2010-2012 are an estimate of those actually experienced over the 3 year period that the data covers. Life expectancies generated from these tables do not make any allowance for expected improvements in mortality rates over a person's lifetime.

Census data over the last century has shown a continuing trend of increasing longevity, for example we might expect a current 30 year old to live to an older age, on average, than someone who is aged 65 now. To allow for these expected future improvements in mortality the Government Actuary also publishes tables of mortality improvement factors based on the increases in longevity experienced in the population over the last 25 years.

Allowing for future improvements, the life expectancies are considerably longer, as presented in the table below:

Life expectancies

ALTs 2005-2007

ALTs 2010-2012

ALTs 2010-2012 with
allowance for future improvements








 From birth
 79.0  83.7  80.1 84.3 90.5 92.2
 From age 65
 83.5  86.6 84.2 87.1 86.6 89.0

Increased longevity has significant implications for both individuals, trying to estimate the resources needed for retirement and the government, dealing with rising pension, health and aged care obligations.

For further detailed calculations please refer to Accurium’s updated Survivorship calculator located in the techhub which provides the option of using the ALTs 2000-2002, 2005-2007 and the recent 2010-2012 mortality tables projected forward assuming future improvements in line with those experienced in the 25 years leading up to the relevant Census.

Tags: Retirement

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