The Actuarial Association in the Netherlands has forecast that the life expectancy of both men and women has increased.

It predicted that a girl born today would now live to an average age of 92.8, up from 91.9 at the previous forecast two years ago.

Life expectancy for men also increased, with a boy born today now expected to live an average of 90 years, up from 89.5 years.

Many Dutch insurers and pension funds use the association’s projections as one of the assumptions for determining their required amount of technical provisions.

For example, Achmea estimated that, due to the rise in life expectancy, its technical provisions will increase by around €90m.

Dutch pension fund ABP noted that the higher life expectancy will lead to a lower funding ratio, as funds will need to pay pensions for longer.

As a result, ABP has estimated that its funding ratio will fall by approximately 1 percentage point.

ABP added that, due to Covid-19, many expected that life expectancy will have decreased, and while more people aged 55 and over died on average in 2020 and 2021, the association does not expect it to have an impact on longer-term life expectancy.

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