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From Chapter 4 of Bill Sharpe's RISMAT

Personal States

"Clearly, it is better not assume that you have a 50% chance of living up to the age that someone

has computed as your 'life expectancy'.

More importantly, it is dangerous to focus on one possible length of a possible future life."

ARC Comment:

A meaningful percentage of retirees will live longer than average and face

additional retirement funding risks.


To manage this uncertainty, it may be less stressful to plan to be one of the lucky ones 

who will need income much longer than the average person (i.e. to age100 years or more),

rather than run the risk of falling short.  "Mortality pooling" is the term used by actuaries

to describe how pension plans and annuities share the risk as a "pool" of people who all run

the unknowable f cost of living a long time.

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