The effect of longevity heterogeneity on the design of pension schemes (Provisional title) ( 31/01/2022 - 16h00 till 18h00)
By Prof. Pierre DEVOLDER, UCL
The objective of this seminar is to address the effect of longevity heterogeneity on the design of pension schemes, especially for social security mechanisms.
Many demographic studies have shown an important positive relationship between life expectancy and socio economic conditions.
Shortly summarized, we could say that rich people live longer than poor people do. The correlation can be observed, based on different indicators such as education level, wealth or level of income.
We first present different figures showing this socio economic gap in terms of life expectancy. Then we evaluate the effect of such inequalities on traditional pension plans and illustrate some anti-redistributive aspects. Finally, we present different possible mechanisms in order to compensate partially or totally these effects (individualized retirement age, individualized annuity rates, progressive formula, two tier approaches…).
The presentation is mainly focused on first pillar pension schemes but we will also address some possible consequences for occupational pension plans.
Some practical information:
MS Teams will be used for the web session.
Schedule of IA|BE: The effect of longevity heterogeneity on the design of pension schemes
| On Monday 31 January: | |
| 16:00 - 18:00 | The effect of longevity heterogeneity on the design of pension schemes, especially for social security mechanisms. By DEVOLDER Pierre |