Notes to the consolidated financial statements
108
23 Pensions and other post-employment benefits (continued)
Ahold at a glance
Business review
Governance
Financials
Ahold
Annual Report 2014
Assumptions regarding longevity are based on published statistics and mortality tables. These assumptions translate into an average life expectancy in years for a pensioner retiring at age 65:
The Netherlands
United States
Years
2014
2013
2014
2013
Longevity at age 65 for current pensioners
Male
20.9
21.9
20.0
19.3
Female
23.3
23.7
22.7
21.1
Longevity at age 65 for current members aged 50
Male
22.7
23.2
20.9
20.2
Female
25.0
24.5
23.6
21.6
The following table summarizes how the effect on the defined benefit obligations at the end of the reporting period would have increased (decreased) as a result of a 0.5% change in the respective assumptions.
million
The Netherlands
United States
Total
Discount rate
0.5% increase
(450)
(82)
(532)
0.5% decrease
533
92
625
Future salary increases
0.5% increase
62
7
69
0.5% decrease
(59)
(7)
(66)
Future pension increases
0.5% increase
493
N/A
493
0.5% decrease
(422)
N/A
(422)
Life expectancy
1 year increase at age 65
137
41
178
The above sensitivity analyses have been based on a change in the assumption while holding all other assumptions constant. In reality one might expect interrelationships between the assumptions, especially between discount
rate and future salary increases as both depend to a certain extent on expected inflation rates. The methods and types of assumptions used in preparing the sensitivity analyses did not change compared to the previous period.