Table 3: Minimum wealth levels that would induce preference for self-insurance by age ( , , low earnings).

AgeYears at workMedian savings rates*Estimated annual savings**Versus IOOF plan for one more yearVersus IOOF plan to age 60 (multiple of annual savings)Versus AALL plan with 4.0% wage premium to age 60Versus AALL plan with 2.6% wage premium to age 60Versus AALL plan with 2.1% wage premium to age 60

2553.3%$18$60 (3.3)$24 (1.3)$6$8$40 (2.2)
30103.8%$23$62 (2.7)$22 (1.0)$6$8$38 (1.7)
35154.1%$25$66 (2.6)$22 (0.9)$6$8$44 (1.8)
40204.0%$25$68 (2.7)$24 (1.0)$6$12$130 (5.2)
45254.4%$27$64 (2.4)$28 (1.0)$6$18 ***
50305.2%$30$62 (2.1)$40 (1.3)$8$52 (1.7) ***
55356.8%$36$60 (1.7)$1,754 (49)$10 *** ***

* Median savings rates for 5-year age groups as reported in Emery [2], using the 1917–1919 US data, including zero surpluses with mortgage expenses. The median savings rate for those aged 20–24 (25–29) was used for the individual with 5 (10) years of work experience, and so forth.
**Average of previous 5 years labour income times the median savings rate for 5-year age groups.
***Wealth levels considered are in the range from 0 to $6,000. Self-insurance was not preferred to the given insurance plan at any wealth level in this range.