BACKGROUNDDenmark and Sweden index their statutory retirement ages to life expectancy. When lifespan increases, so does retirement age. This policy does not consider demographic heterogeneity in life expectancy, e.g., between migrants and non-migrants, posing possible issues for pension policies that index retirement age to life expectancy.
OBJECTIVETo understand how mortality inequalities between migrants and non-migrants interact with the indexation of statutory retirement age in Denmark and Sweden.
METHODSWe used Danish and Swedish registry data from 1988-2018, and included individuals aged 50+. Migrants were classified as European-born or non-European-born. We calculated the probability of dying before retirement age, remaining life expectancy at retirement age, lifespan inequalities after retirement age, and the likelihood that a nonmigrant would outlive a migrant. We also classified the Danish-born population into four income levels and compared them to migrant groups.
RESULTSNon-European-born migrants had the survival advantage in both countries, but equal or higher lifespan inequality at retirement. Sweden had a proportionally larger migrant population, but Denmark's was more diverse. The probability that a non-migrant would outsurvive a migrant was 40%-50% in both countries.