TY - JOUR
T1 - Getting life expectancy estimates right for pension policy
T2 - Period versus cohort approach
AU - Ayuso, Mercedes
AU - Bravo, Jorge Miguel
AU - Holzmann, Robert
N1 - Ayuso, M., Bravo, J. M., & Holzmann, R. (2021). Getting life expectancy estimates right for pension policy: Period versus cohort approach. Journal of Pension Economics and Finance, 20(2), 212-231. [Advanced online publication on 13 May, 2020]. https://doi.org/10.1017/S1474747220000050 . doi:10.1017/S1474747220000050
PY - 2021/4
Y1 - 2021/4
N2 - In many policy areas it is essential to use the best estimates of life expectancy, but it is vital to most areas of pension policy. This paper presents the conceptual differences between static period and dynamic cohort mortality tables, estimates the differences in life expectancy for Portugal and Spain, and compares official estimates of both life expectancy estimates for Australia, the United Kingdom, and the United States for 1981, 2010, and 2060. These comparisons reveal major differences between period and cohort life expectancy in and between countries and across years. The implications of using wrong estimates for pension policy, including financial sustainability, are explored.
AB - In many policy areas it is essential to use the best estimates of life expectancy, but it is vital to most areas of pension policy. This paper presents the conceptual differences between static period and dynamic cohort mortality tables, estimates the differences in life expectancy for Portugal and Spain, and compares official estimates of both life expectancy estimates for Australia, the United Kingdom, and the United States for 1981, 2010, and 2060. These comparisons reveal major differences between period and cohort life expectancy in and between countries and across years. The implications of using wrong estimates for pension policy, including financial sustainability, are explored.
KW - Balancing mechanism
KW - cross-country comparison
KW - Lee-Carter
KW - life expectancy indexation
UR - http://www.scopus.com/inward/record.url?scp=85085339027&partnerID=8YFLogxK
UR - http://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcAuth=Alerting&SrcApp=Alerting&DestApp=WOS_CPL&DestLinkType=FullRecord&UT=WOS:000626998300003
U2 - 10.1017/S1474747220000050
DO - 10.1017/S1474747220000050
M3 - Article
AN - SCOPUS:85085339027
VL - 20
SP - 212
EP - 231
JO - Journal of Pension Economics and Finance
JF - Journal of Pension Economics and Finance
SN - 1474-7472
IS - 2
ER -
