Publication:
A Study On Longevity Factor: The Case Of Government Pensioner In Malaysia

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Date

2015

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Univ Malaysia Sarawak, FAC Economics & Business

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Abstract

There are many researches showing that the life expectancy for most countries is increasing. Since the life expectancy at a particular age tends to increase over time for male and female, the mortality risk tends to be smaller over time. Therefore it is expected that pensioners tend to live longer and thereby cause increase in pension liabilities to the government. Countries are looking for solutions to decrease the effect of increased longevity on pension costs. The most common changes are to equalize the retirement age for male and female and to rise the retirement age. Therefore, we studied the longevity factor for the government pensioner in Malaysia at age 55, 56, 57, 58, 59 and 60 years respectively. Since the pensions are paid for the rest of the pensioner's life in the event of his death and also to his spouse and child if any in the form of a derivative pension, the longevity factor for pensioner, spouse and child will be formulated and estimated separately. To formulate and estimate these factors, the theory of annuities and the Pension Law of Malaysia need to be studied.

Description

International Journal of Business and Society, Vol. 16 No. 1, 2015, 147 - 161

Keywords

Life Expectancy, Mortality Risk, Pension Liabilities, Longevity Factor, Derivative Pension, Annuities

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