CANADA - Longevity rates are set to slow and mainly affect older people in coming years, according to the chief actuary of the Canadian Pension Plan (CPP), Jean-Claude Ménard.
Ménard commented: "Most experts agree that the rapid increase in life expectancy at birth that occurred during the 20th century will not continue and that future increases in life expectancy will have to take place at older ages as opposed to younger ages."
He added: "While the probability of reaching age 65 has significantly increased in the past (from 60% to 91%), it is expected to only increase marginally in the future, reaching 95% by 2075.
"In my view, it is much more important to look at the probability of reaching age 85 in the future to properly assess the costs of pension plans," Ménard concluded.
The chief actuary also highlighted the differences the panel which had carried out the report had found between the country's own mortality rates and those of the neighbouring United States.
Ménard said: "They believe that a gap will continue to exist between (lower) Canadian mortality rates and (higher) US mortality rates based on three advantages in Canadian society: access to universal health care, lower rates of obesity, and lower rates of poverty and less disparity of income."
Because of these factors, the CPP only used Canadian data from the past 30 years to create the 75 year projection period of the actuarial report on the CPP.
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