New paper by our Jesús-Adrián Alvarez about the effects of linking retirement age to life expectancy on inequality of years spent in pension in Denmark
Countries such as the Netherlands, Estonia, Denmark and Finland have implemented reforms that link retirement age to changes in life expectancy. What does this type of policy mean for different socio-economic groups? In their new paper focusing on Denamrk, Jesús-Adrián Alvarez with co-authors conclude that linking retirement age to life expectancy increases uncertainty about length of life after retirement. They also conclude that males from lower socio-economic groups are at the greatest disadvantage, because they spend fewer years in retirement, pay higher pension costs per year of expected benefits and are exposed to higher longevity risk than the rest of the population. Inequalities in longevity have a big impact in pension schemes. Therefore, policy makers should consider them when setting retirement ages.
Health and inequalities in ageing
Economic and political demography
