DMIT Annual Report 2017

N OTES TO THE C ONSOLIDATED F INANCIAL S TATEMENTS (Thousands of US dollars) Dar Al-Maal Al-Islami Trust 80 35. Retirement benefit plans (continued) The significant actuarial assumptions were as follows: 2017 2016 Discount rate 0.6% 0.6% Salary growth rate 2.0% 2.0% Assumptions regarding future mortality are set based on actuarial advice in accordance with published statistics and experience in each territory. These assumptions translate into an average life expectancy in years for a pensioner retiring at age of 65. 2017 2016 Retiring at the end of the reporting period: Male 22.4 22.3 Female 24.4 24.3 Retiring 25 years after the end of the reporting period: Male 24.6 24.6 Female 26.6 26.6 The sensitivity of the defined benefit obligation to charges in the weighted principal assumptions is: Impact on defined benefit obligations 2017 Change in assumption Increase in assumption Decrease in assumption Discount rate 0.5% Increase by 2.9% Decrease by 2.6% Increase by one year in assumption Decrease by one year in assumption Life expectancy Increase by 1.1% Decrease by 1.1% 2016 Discount rate 0.5% Increase by 4.9% Decrease by 4.3% Increase by one year in assumption Decrease by one year in assumption Life expectancy Increase by 1.7% Decrease by 1.7% The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the project unit credit method at the end of the reporting period) has been applied as when calculating the pension liability recognised within the statement of financial position.