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ReserarchID
3IQ4U
Crossref Journal DOI 10.17406/GJHSS
Print ISSN 0975-587X
e-ISSN 2249-460X
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Heterogeneity in longevity between socioeconomic groups is increasingly documented for developed economies and is reviewed in the paper. Heterogeneity in life expectancy disaggregated by main socioeconomic characteristics -such as age, gender, race, health, education, profession, income, and wealth -is sizable and has not declined in recent decades. The prospects for future decline are not strong, either; perhaps even to the contrary. As heterogeneity is closely linked to income or earnings (i.e., the contribution base of earnings-related retirement income programs such as social security benefits and private sector life annuities) and as heterogeneity is empirically sizable, the result is major implicit taxes for some groups -particularly the less educated and low earners -and major subsidies for other groupsparticularly highly educated individuals and high-income earners. The implications for retirement income reform and scheme design are substantial as taxes/subsidies counteract the envisaged effects of (i) a closer contribution-benefit link, (ii) a later formal retirement age to address population aging, and (iii) more individual funding and private annuities to compensate for reduced public generosity.
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