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Question: For a pension evaluation, can I get a life expectancy table customized to my client?
We do not have any way of using a police or firefighter-specific life expectancy table.
Nor for a smoker.
Nor for a skydiver.
Nor for someone who is black, white, or Asian.
Nor for someone who has diabetes or heart disease.
Nor for someone who is known to be in particularly good health, or bad health.
In this respect, the pension valuations are a much worse guess then we theoretically could do.
What the pension valuation community has agreed to do is to use a single table for everybody.
This sacrifices accuracy, but it gains uniformity and the reduction of argument and debate.
Without this agreement, every pension would involve a determination of how significant was the risk, health, race, or whatever parameter applied.
Not to mention the challenge of creating a new table for every possible situation.