November 12, 2019

Average Life Expectancy in India 2019 – What we can learn?

Have you gone through the Average Life Expectancy in India 2019? Many of us feel why it is required to us? But it is one of the important numbers when we do retirement planning.

# Can you believe few thousand years back, the average life expectancy of humans was around 20 years to 40 years?

# Can you believe that the average life expectancy is rising at a rate of 0.5% to 1%?

# Can you believe that health facilities is the major booster for this increase in life expectancy?

We can’t right? Read the below numbers.

Based on this average life expectancy or our life expectancy, our retirement corpus should be arrived at. Hence, knowing the average life expectancy in India 2019 and what the trend shows is of utmost importance.

Meaning of Life Expectancy

It is the average period of a person that he or she can expect to live. As per Wikipedia, the definition of Life Expectancy is “Life expectancy is a statistical measure of the average time an organism is expected to live, based on the year of its birth, its current age and other demographic factors including gender.”

Average Life Expectancy in India 2019

As per the National Health Profile 2019, the average life expectancy of Indians is 68.7 years. Male life expectancy is 67.4 years and female life expectancy is 70.2 years. Below is the trend from 1970s to 2016.

Average Life Expectancy in India 2019

Average Life Expectancy in India 2019 – What we can learn?

One of the biggest misconceptions among us is that if our parents lived up to 70 years of age, then we believe we may not live up to 70 years of age. The reason we put forward is our bad food habits and sedentary or stressful lifestyle.

HOLD ON!! The results show a different story 🙂 Do you imagine that the average life expectancy of humans during the 1770s was around 30 years to 40 years?? Yes, it is a reality. Check this wonderful interactive chart by ourworldindata site.

World Life Expectancy

You notice that during 1700s, the life expectancy was around 30 Yrs to 40 Yrs and now it reached to around 70 years of age. In fact, Japan topping the list with 83.9 years of age. South Africa has the lowest life expectancy of 62.6 years. We Indians as per this chart stand at 68.6 years.

In fact, as per the below chart, the average life expectancy of Indians was around between 20 years to 30 years during 1900. See the below graph.

World Vs India Life Expectancy

During the 1800s, the average global life expectancy was 32 years!!

During the 1950s, the average global life expectancy was increased to 48 years!!

During 2012s, the average global life expectancy was increased to 70 Years!!

Life Expectancy by Age

What we can learn from all these scaring numbers? Let us discuss on these issues one by one.

# These are AVERAGE numbers

These are the average numbers. Hence, the average may be applicable to the group but not to an individual. we as an individual may live less than or more than average.

Assume average life expectancy is 80 years. Then I may live up to 50 years, 80 years or up to 100 years of age.

How many of us are ready to OUTLIVE than the average?

# Health facilities are the major drivers in increasing the life expectancy

If we try to find the reasons for this increase in life expectancy, then the major force for this is the health facilities we have today. This may not apply to many countries like Japan (who as per me are more active physically). However, overall if we look worldwise, then health facilities is a major reason.

# Inflation rate with respect to Life Expectancy

To do this calculation, I have considered the Indian Life Expectancy from the year 1881 to 2019. During 1881, the average life expectancy of Indians was 25.44 years!!

In 2019, as per our world in data website, it is 69.56 years. I took the % of variation with respect to previous year life expectancy data to arrive at the inflation rate of life expectancy.

The average inflation rate of life expectancy from 1981 to 2019 is around 0.57%. During some years, it zoomed to 11% also.

What it indicates that if someone is planning for retirement goal and his age is 30 years and planning to retire at 50 years of age, then if we consider the current life expectancy of India as per National Health Profile 2019 report, it is 68.7 years. Hence, we have to assume inflation of 0.5% to 1% to arrive at this person’s life expectancy when he actually retire at the age of 50 years.

The current life expectancy of 68.7 years maybe around 75 years with 0.5% inflation and 83 years when this guy turn 50 years of age.

If we consider further to his life expectancy then if we add around 5 to 10 years to these figures, then it is around 80 years to 90 years of age!!

Whether you planned your retirement planning with 80 years or 90 years of life expectancy??

# Women live longer than men!!

Yes, data shows that women live longer than men. For example, the current life expectancy for men is 68.7 years. However, for women, it is 70.2 years.

Hence, if you are doing retirement planning, then it is always better to add 2 years to 5 years to your life expectancy to make sure that your spouse’s retirement life is also secured.

# Urban life expectancy is higher than rural!!

Yes, the life expectancy of urban Indians as of now is 72.2 years while rural it is 67.4 years. Hence, as per the data, it is clear that those who stay in an urban area outlive to those who live in rural. This data itself proof that health facilities are the major driving force in increased life expectancy.

Conclusion:-

# Your Average Life Expectancy for your retirement planning should not be below 80 years.

# Never be in the wrong assumption that you can’t live beyond 70 years of age. There are higher probability now that you can live beyond 80 years of age also.

# Your wife’s life expectancy is higher than yours. Hence, be ready to fund for her retirement planning.

# It again depends where you are living like rural or urban. However, I always prefer to play safe. Hence, better to consider the life expectancy of urban individuals than rural.

# Life Expectancy numbers are AVERAGE. If you crossed that average number, then you will be under RISK. Hence, consider the maximum life expectancy you can.

Let me know now how you are planning for your retirement life 🙂

 

 

 

 

 

14 Comments

  1. Excellent article, i had wrong perception that life expectancy is getting reduce in india.

    Reply
  2. Respected Basunivesh

    It is a valuable information worth sharing

    Reply
  3. Is there any data available for median age at death in a particular year?

    Reply
    • Dear Muthu,
      For 2017, it is available in the National Health Profile 2019 data (Link is shared above).

      Reply
  4. Can you tell me how to calculate maturity of Variable Recurring Deposit for 84 months ?

    Reply
    • Dear RTalukdar,
      You can do so by using XIRR function of Excel.

      Reply
  5. Basu, do you think issues like pollution in Delhi will cause negative concerns for the life expectancy?

    Reply
    • Dear Pradeep,
      Yes, it may. But with the kind of pollution, how many wish to stay in Delhi during their retirement age?

      Reply
  6. Why japan in top position ?

    Reply
  7. Hence, as per the data, it is clear that those who stay in an urban area outlive to those who live in urban*. This might be “Rural”?

    Reply

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