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

Stauvermann, Peter J. and Kumar, Ronald R. and Patel, Arvind (2022) Why the increase in the retirement age will lead to more inequality and poverty? An ignored fairness problem. Panoeconomicus, NA . NA. ISSN 1452-595X

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Abstract

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.

Item Type:	Journal Article
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HG Finance
Divisions:	School of Accounting, Finance and Economics (SAFE)
Depositing User:	Ronald Kumar
Date Deposited:	22 Feb 2022 22:29
Last Modified:	22 Feb 2022 22:29
URI:	https://repository.usp.ac.fj/id/eprint/13250

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