Longevity is becoming more and more of a factor in annuity rate calculations

Below are my comments from a  recent article in the Globe and Mail “Canadian Wheat Board tackles pension risk with annuity
We have warned in recent articles, that longevity is becoming more and more of a factor in annuity rate calculations.
WhiAnnuity Longevityle some are waiting patiently for annuity rates to rise,the companies are worried about longevity or the need to keep paying pensions longer than anticipated.
And you will see from the following extract that the concern has moved the CWB to transfer risk in its group plan.

“The Canadian Wheat Board inked a $150-million deal to buy an annuity policy that will transfer the risk in its defined benefit pension plan to a subsidiary of insurer Sun Life Financial Inc.

The move comes as many pension funds in Canada and other markets such as the U.S. and U.K. are facing underfunded pension plans battered by stock market volatility, prolonged low interest rates and longer life spans”

So each retiee or near retiree needs to take longevity into consideration.Yes,interest rates may rise some day,but will annuity rates follow?