Abstract
The old pension scheme pension were based on length of service and on a percentage of final salaries. In the new pension scheme contributions are invested till retirement. Accumulated contributions are used to purchase pension at retirement. The paper looks at the effect of longevity on the annuity values at retirement and the consequent pensions. Three lives age 25, 35 and 45 with 35, 25 and 15 years to retirement are considered. Five Life Tables with life expectancies of 13.48, 14.43, 15.61, 17.98 and 19.51 years at age 60 each were considered. We find that the new pension rate is considerably less than the old rate for each Life Table and longevity increases annuity value, thereby reducing pensions. The percentage goes from 100% to 82.8% taking the Life .Table with the least life expectancy as a base and for a life aged 25.The same result follows for each life considered,
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