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In May's edition of The Treasurer Martin O'Donovan introduced the Technical Update section with a reference to Halley's 1693 study on the pricing of annuities on a life expectancy basis, which was ignored by the government of the day. At that time annuities were sold (to anyone) on the basis of a 14 year life expectancy.
How much more valuable would an annuity based on 20 years be compared to one based on 14 years if market rates are 6.0% and annuities were fairly priced?
