Re: working out pension annuity factors

Hi,

I got the tables from the Institute of Actauries website.

What they show is:


Age![x]q{x} Age!x+0 Years
(
expectancy)

20 0.000112 20 65.764
21 0.000112 21 64.771
22 0.000112 22 63.779
23 0.000112 23 62.786
24 0.000112 24 61.793
25 0.000112 25 60.800


So, it should be no problem to work this out on current age, rather
than year of birth (I guess it is one and the same).

I'm still not sure how to apply the formula J =(1 +I)/(1 +R)-1
to the factors above.

Saying that, I'm still a bit confused in general.

Assuming n = 5 (guaranteed term) and Dx is the mortality factor, what
figure is plugged into ä ?

Is that the value of the pension fund that is to be annuitised ?

I think I need to read a decent book on actuarial notation and
calculations. Can anybody recommend anything ?


Thanks again.
SS

.