Table 4: Minimum wealth levels that would induce preference for self-insurance by age ( , , high 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%$36$132 (3.6)$66 (1.8)$6$12$64 (1.8)
30103.8%$44$120 (2.7)$56 (1.3)$6$12$68 (1.5)
35154.1%$49$116 (2.4)$48 (1.0)$6$14$76 (1.5)
40204.0%$48$108 (2.3)$52 (1.1)$8$16$212 (4.4)
45254.4%$51$124 (2.4)$64 (1.3)$8$28 ***
50305.2%$58$124 (2.1)$90 (1.6)$12$90 (1.6) ***
55356.8%$69$120 (1.7)$1,224 (18)$14 *** ***

* 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.