At retirement, the accumulated funds from investments are used to purchase annuities which invariably determine the quantum of pensions for a retiree. The annuity cost depends solely on the life table with its own life expectancies and the discounting factor which depends upon the state of the economy. In an economic boom the discounting factor is high while in a depressed struggling economy the discounting factor is low. In this paper we consider three life tables with life expectancies at 60 to be 14.43, 17.98 and 19.51 respectively. We assumed discounting factors of 9%, 10%, 11%, 12%, 13% and 14% respectively to reflect various states of the economy.
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