Mortality by socio-economic class and its impact on the retirement schemes: how to render the systems fairer?

Abstract

Many OECD countries have addressed the issue of increased longevity by mainly increasing the retirement age. However, this kind of reforms may lead to substantial transfers from those with shorter lifespans to those that will live longer than the average, as they do not necessarily take into account the socio-economic differences in mortality. The contribution of our paper is therefore twofold. Firstly, we illustrate how both a Defined Benefit and a Notional Defined Contribution pay-as-you-go scheme can put the lower social economic classes at a disadvantage, when compared to the actuarially fair pensions. In contrast to that, higher classes experience a gain. This is due to the fact that mortality rates per socio-economic class are not considered by either scheme. Consequently, we propose a model that determines the parameters for each scheme and class which would render the pensions fairer even when no socio-economic mortality differences are considered.

Un estudio internacional del sistema de pensiones para el régimen de pensiones mexicano

“…Para el titular de la cuenta de la AFORE, cuyo SBC es de $67 215.00, en comparación con otros salarios, los pagos mensuales a obtener al momento del retiro muy probablemente serán insuficientes para garantizar una calidad de vida debido a que con una tasa de reemplazo de 18.84% se disminuiría significativamente la forma de vida con la que el beneficiario está acostumbrado. La tasa de reemplazo obtenida en este estudio está incluso muy por debajo del promedio que maneja la OCDE, es decir, es necesario una reforma al sistema de cuentas individuales que complemente al régimen de pensiones (Jijiie et al, 2022), además, en comparación con los países analizados y a pesar de la última reforma a la LSS, aún es necesario aumentar las tasas de contribución de los trabajadores al sistema.…”