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Zooming in on ZIP Codes: Using Socio-Economic Factors to Tailor U.S. Pension Plan Longevity Assumption

A Diverse Nation

The United States is a diverse nation made up of many people with distinctly different characteristics. This diversity is particularly noticeable when you analyze life expectancy. Each state itself is made up of a diverse mix of people, but even so, the state average life expectancies are very different from state to state, with more than four years of difference in life expectancy from Kentucky to Hawaii.

What is contributing to this diversity, and how can pension plans account for it when setting their longevity assumptions?

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