Mortality Assumptions: Are Planners Getting It Right?

Krueger, Cheryl
December 2011
Journal of Financial Planning;Dec2011, Vol. 24 Issue 12, p36
Academic Journal
The article discusses the mortality assumptions of financial planners in the U.S. retirement income sector. It explains that life expectancy is the expected remaining years of a person's life and is based on probabilities. It states that while life expectancy guides the selection of a retirement planning age, it is unlikely to be an accurate planning age. It says that the best known mortality tables, which can be used for determining retirement planning ages, are the U.S. Social Security Administration's general population mortality tables. It mentions that the use of planning ages longer than the clients' life expectancy may favor annuitization, while the use of shorter ones may recommend life insurance to provide protection for their survivors.


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