Zooming in on ZIP codes

Using socio-economic factors to tailor US pension plan longevity assumptions

Given that differences in life expectancy are recognized to be largely driven by lifestyle rather than genetic make-up, how can plan sponsors tailor their longevity assumptions to reflect the characteristics of their participants?



Mercer has partnered with Club Vita to help them apply their innovative approach to longevity modeling to the U.S. Club Vita has already successfully implemented their model, called “VitaCurves”, to measure pension liabilities in the UK and Canada.


What makes Club Vita’s approach to mortality different is that their model takes an even more detailed look at every individual’s profile – down to the zip code level.  By harnessing the wealth of information captured by ‘zooming in’ on each participant’s ZIP+4 code, together with other key factors such as gender, collar, affluence and retirement health, we can more accurately capture the diversity of your pension plan’s demographics.


Applying this baseline model to thedata readily available in plan records, the VitaCurves analysis shows variability in life expectancy at age 65 of over 8 years and liability differences of up to 6% relative to the standard Society of Actuaries tables.


Club Vita’s new white paper, Zooming in on ZIP Codes, explains the big ideas behind “VitaCurves” and how they can help your pension plan.


Fill out the form to download the white paper.

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