IOOF Technical Update
Technical

New Australian Life Tables 2005-07

By TechConnect Team

The Australian Government Actuary released the Australian Life Tables 2005-07 on 28 November 2009. Australian Life Tables are published every five years. The gap between male and female life expectancies at birth is now the lowest it has been for over 50 years. The good news is that we are all living longer.

The new Life Tables will be required to be used by financial advisers from 1 January 2010. The new 2005-07 Life Tables primarily affect the calculation of the deductible amount under the income test of pensions for social security purposes. Under social security rules, the amount excluded annually from income under the income test is the purchase price of the pension divided by life expectancy at commencement of the pension.

These new Life Tables will affect the following:

  • new account based pensions that commenced from 1 January 2010;
  • existing pensions that have been rolled over into a new pension post 1 January 2010;
  • financial planning pre-retirement and retirement planning projections; and
  • determining the term for new Term Allocated Pensions (TAP) commencing from 1 January 2010.

The table below outlines the changes over the years to the Life Tables for males and females aged between 55 and 75.

 

Australian Life Tables 1995-1997

Australian Life Tables 2000-2002

Australian Life Tables 2005-2007

Difference  00/02 and 05/07

Age

Male

Female

Male

Female

Male

Female

Male

Female

55

24.22

28.53

25.92

29.91

26.95

30.53

1.03

0.62

56

23.36

27.63

25.05

29

26.08

29.61

1.03

0.61

57

22.52

26.74

24.19

28.1

25.2

28.7

1.01

0.6

58

21.68

25.86

23.34

27.21

24.34

27.79

1

0.58

59

20.86

24.98

22.49

26.32

23.48

26.89

0.99

0.57

60

20.05

24.11

21.66

25.44

22.63

26

0.97

0.56

61

19.25

23.25

20.84

24.57

21.79

25.11

0.95

0.54

62

18.46

22.39

20.04

23.71

20.96

24.23

0.92

0.52

63

17.7

21.54

19.24

22.85

20.14

23.35

0.9

0.5

64

16.94

20.7

18.46

22

19.34

22.48

0.88

0.48

65

16.21

19.88

17.7

21.15

18.54

21.62

0.84

0.47

66

15.49

19.06

16.95

20.32

17.76

20.76

0.81

0.44

67

14.79

18.25

16.21

19.49

16.99

19.92

0.78

0.43

68

14.11

17.46

15.48

18.67

16.24

19.08

0.76

0.41

69

13.44

16.67

14.78

17.87

15.49

18.24

0.71

0.37

70

12.8

15.9

14.08

17.08

14.76

17.42

0.68

0.34

71

12.17

15.14

13.41

16.29

14.04

16.61

0.63

0.32

72

11.56

14.4

12.75

15.53

13.33

15.82

0.58

0.29

73

10.96

13.67

12.11

14.78

12.64

15.03

0.53

0.25

74

10.38

12.96

11.5

14.05

11.96

14.27

0.46

0.22

75

9.82

12.26

10.9

13.33

11.31

13.51

0.41

0.18