Specialist actuary, Spence & Partners, have updated their highly successful Life Expectancy calculator and added it to their website . The calculator provides estimated life expectancy for single and joint lives and has been widely used by financial advisers to assist in evaluating life expectancy for their clients as part of the process of establishing cash flow requirements in retirement.
Spence & Partners Development Director, David Davison, commented “Life expectancy is a really hot topic at the moment. We were approached by a number of financial advisers we work with who were struggling to provide some sort of statistical modelling for their clients which would allow them to identify their financial objectives and risks in retirement. Whilst the cash flow models many advisers used were very sophisticated the factoring for life expectancy tended to be much more of a ‘gut feel.’ The calculator we have designed provides a probability of survival to each age based on specific ages for single and joint lives, based on information supplied by the Office of National Statistics. The calculator also allows the adviser to vary the mortality assumption (heavy, light and national average) to reflect regional and individual variations.” The calculator would of course be equally useful to individuals planning their future financial requirements and who wanted to know how long they might reasonably expect to live. Any questions about the calculator or our support services for IFA’s, Professional firms and clients can be directed to mail@spenceandpartners.co.uk.