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Biological (and Other) Ages

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Abstract

This chapter examines the implications of mortality heterogeneity, that is the dispersion of longevity prospects within the population. It begins by discussing the extended Gompertz–Makeham model, as well as the compensation law of mortality, linking moments of the remaining lifetime random variable. It then introduces non-chronological measures of age, such as biological age and (especially) longevity risk-adjusted age to illustrate its dispersion. This chapter illustrates how true age can differ around the world and even within countries, based on wealth and income. The main computational implication of this chapter is that the human longevity random variable T x, depends on (much) more than just chronological age x. Such heterogeneity must be accounted for in any intelligent drawdown methodology or pensionization scheme.

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Authors and Affiliations

  1. Schulich School of Business, York University, Toronto, ON, Canada

    Moshe Arye Milevsky

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  1. Moshe Arye Milevsky
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Milevsky, M.A. (2020). Biological (and Other) Ages. In: Retirement Income Recipes in R. Use R!. Springer, Cham. https://doi.org/10.1007/978-3-030-51434-1_13

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