For most Australians, the words ‘actuarial life table’ might sound like something only a maths whiz or insurance executive would ever need. But these tables play a surprisingly big role in shaping the financial landscape — affecting your superannuation, life insurance premiums, pension rules, and even how long your retirement savings might last. As 2025 brings updated longevity data and policy changes, it’s the perfect time to get to grips with what actuarial life tables are, how they’re constructed, and why they matter to your financial future.

What Are Actuarial Life Tables?

An actuarial life table is a statistical tool used to estimate the probability of a person of a certain age dying before their next birthday. Life tables are the backbone of the insurance and pension industries, providing a snapshot of mortality rates and life expectancy across age groups, genders, and sometimes other demographics.

Columns in a typical life table: Age, number of survivors at each age, probability of dying, life expectancy at each age.
Australian context: The Australian Government Actuary (AGA) and the Australian Bureau of Statistics (ABS) regularly publish updated life tables using national death and population data.
2025 update: The latest ABS data shows life expectancy at birth for Australians now sits at 81.7 years for males and 85.2 years for females, reflecting continued improvements in health and longevity.

How Are Life Tables Used in Finance?

Actuarial life tables are far more than academic exercises — they are directly embedded in financial products and policies that affect Australians every day.

Superannuation & Retirement Planning

Life tables underpin the calculations for how long your superannuation is expected to last and influence the minimum drawdown rates set by the Australian Taxation Office (ATO). With longevity on the rise, 2025 has seen the ATO review its drawdown rates, factoring in the latest life expectancy data. This helps ensure retirees don’t outlive their savings, but also aren’t forced to withdraw too quickly.

Insurance Premiums

Life insurers use actuarial life tables to price policies. For example, a 40-year-old non-smoking female will be offered a different premium than a 60-year-old male smoker, as the tables reflect differing probabilities of death. The 2025 update has seen some insurers adjust pricing as longevity continues to increase, particularly among women and non-smokers.

Government Pensions and Annuities

The Age Pension, as well as private annuity products, rely on life tables to set payment rates and eligibility thresholds. In 2025, the Treasury is using updated mortality rates to review the sustainability of pension funding, and some annuity providers are tweaking their offerings to reflect higher life expectancy.

2025 Trends: Why Actuarial Life Tables Are in the Spotlight

Longevity risk: As Australians live longer, the risk of outliving retirement savings grows. Financial planners and super funds are increasingly using updated life tables to model ‘worst-case’ longevity scenarios for their clients.
Gender gap in life expectancy: The widening gap between male and female life expectancy has prompted some funds to explore gender-based pricing and advice strategies.
Policy reviews: In 2025, both the Productivity Commission and APRA are reviewing how accurately life tables reflect the diversity of Australia’s population, including regional, Indigenous, and socio-economic differences. The goal: fairer, more tailored financial products.

Real-world example: When the ABS updated its life tables in late 2024, some major super funds (like AustralianSuper and Sunsuper) quickly updated their retirement calculators and longevity estimates, prompting many members to revisit their retirement plans.

How to Use Life Table Insights for Smarter Financial Planning

Check your super fund’s assumptions: Ask your fund or adviser which life tables they use, and how often they’re updated. More accurate tables mean better retirement projections.
Consider personal factors: While life tables give population averages, your health, lifestyle, and family history can make your personal life expectancy higher or lower than average.
Review your insurance cover: If you’re healthy and in a low-risk category, you may benefit from shopping around as insurers adjust premiums based on the latest data.
Plan for a longer retirement: With life expectancy rising, retirement plans that seemed sufficient 10 years ago may need a refresh in 2025. Use updated calculators and talk to your adviser about longevity risk.

The Bottom Line

Actuarial life tables might seem like a technical detail, but they have a profound impact on your finances — from how much you’ll need to retire comfortably, to the insurance premiums you pay. With 2025 bringing new data and policy reviews, now is a smart time to understand how these tables work and ensure your financial plans are built on the most up-to-date assumptions. Whether you’re approaching retirement, managing your super, or just curious about longevity trends, a little knowledge of actuarial life tables can help you make more confident, informed decisions.