The Rising Longevity Gap by Lifetime Earnings: Distributional Implications for the Pension System

Haan, Peter; Kemptner, Daniel; Lüthen, Holger

doi:10.2139/ssrn.3069464

SSRN Journal

2017

DOI: 10.2139/ssrn.3069464

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The Rising Longevity Gap by Lifetime Earnings: Distributional Implications for the Pension System

Peter Haan

Daniel Kemptner

Holger Lüthen

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Cited by 2 publications

References 12 publications

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Social Security and the increasing longevity gap

Sheshinski

Caliendo²

2020

J Public Economic Theory

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Growth in overall life expectancy is straining the Social Security budget, and the gap in life expectancy between the rich and poor is widening. Motivated by these facts, this paper does four things. First, we develop a simple way to summarize the degree of progressivity in a Social Security system. Second, we show that growth in the life expectancy gap over the last few decades unwinds three-quarters of the progressivity of the Social Security system. Third, we develop simple reforms to Social Security that maintain the progressivity of the system and restore fiscal solvency. Fourth, we estimate the welfare effects of these potential reforms.

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Social Security and the increasing longevity gap

Sheshinski

Caliendo²

2020

J Public Economic Theory

View full text Add to dashboard Cite

show abstract

Why the increase in the retirement age will lead to more inequality and poverty? An ignored fairness problem

2023

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In this study, we show with the help of a simple model that an increase of the retirement age has a negative impact on the distribution of pension benefits in the Bismarckian as well in the Beveridgean pension system. In both systems, the distribution of pension benefits will change in favour of high-income earners. Additionally, we show that the increasing gap in the life expectancies of low and high-income earners will increase inequality. Both results are a consequence of the positive relationship between the socio-economic status and life expectancy of a person. These important insights are often ignored by the promoters of pension reforms.

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The Rising Longevity Gap by Lifetime Earnings: Distributional Implications for the Pension System

Cited by 2 publications

References 12 publications

Social Security and the increasing longevity gap

Social Security and the increasing longevity gap

Why the increase in the retirement age will lead to more inequality and poverty? An ignored fairness problem

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