The life expectancy model is intended to predict the future

ATP Livslang Pension (Lifelong Pension) will be paid your entire life - from the day you retire. No matter what age you reach. In order to live up to that promise, we must be able to project what the future life expectancies of Danes will be. We have developed a life expectancy model to do that.

How long is an entire life? It is impossible to say for certain, but as a pension company, we still want to get as close as possible to the correct answer so that we can plan the allocation of our pension assets. 

Therefore, we have created a life expectancy model that helps us to calculate the projected life expectancy of our members so that we can ensure that people can always rely on getting their pension from us - both current and future pensioners. 

We have made a promise that ATP Livslang Pension (Lifelong Pension) lasts an entire lifetime - no matter what age one ends up living to.

Kim Kehlet Johansen Executive Vice President, Risk Management & Compliance

How do we calculate the projected life expectancy?

Our life expectancy model is based on a number of assumptions about how life expectancies will develop in the future. Therefore, we use the data that tell us about lifestyles, treatment options, socio-economic factors, etc. 

We do not only use Danish data, we also use data from a number of other Western countries that are comparable to Denmark. This is so that we can have a precise and stable prognosis for the future life expectancy improvements. Our model is based on the assumption that the Danish trends in life expectancy will match the international trends and in the long run approach the international average. Due to this assumption, it is important that the countries that are part of the international dataset are comparable to Denmark.