An Actuary’s Take on Longevity and Early Retirement

 As an actuary, the guy practically bathes in numbers. He also spends a lot of time contemplating heartwarming topics like life expectancy and the factors that alter it.

The Actuary on FIRE is not to be confused with actually on fire; but instead is an actuary with a family on the east coast and he’s revving up his game after a recent financially indolent interlude.

An Actuary’s Take on Longevity and Early Retirement

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According to the CIA World Factbook, the life expectancy in the United States is currently 79.8, and has the 48th highest figure in the world. Monaco has the highest with a life expectancy almost 10 years higher at 89.5 years.

How Long Are We Going to Live?

Death rates have not been static throughout history; for example, the mean life expectancy of Kings of England from 1000 A.D. to 1600 A.D. was only 48 years, so can you imagine what it was like for the general serfs?

Future Improvements

There is no doubt that we are living longer, and this will continue for the foreseeable future, and within a few decades it will be relatively common to live to 100.

If you are planning to retire in your 30s, 40s or even 50s, then the potential future timespan can become very large and stretch into multiples of decades. Financially we have rarely seen such long planning horizons.

Financial impact of additional years of life

Financially we have rarely seen such long planning horizons. Companies plan for a few years, governments less than a decade, and insurers and pension funds a few decades.

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