IDEAS home Printed from https://ideas.repec.org/a/voj/journl/v70y2023i1p29-46id819.html
   My bibliography  Save this article

Why the Increase in the Retirement Age Will Lead to More Inequality and Poverty? An Ignored Fairness Problem

Author

Listed:
  • Peter J. Stauvermann
  • Ronald R. Kumar
  • Arvind Patel

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. JEL: H55, D31.

Suggested Citation

  • Peter J. Stauvermann & Ronald R. Kumar & Arvind Patel, 2023. "Why the Increase in the Retirement Age Will Lead to More Inequality and Poverty? An Ignored Fairness Problem," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 70(1), pages 29-46.
    • Handle: RePEc:voj:journl:v:70:y:2023:i:1:p:29-46:id:819
    as

    Download full text from publisher

    File URL: https://panoeconomicus.org/index.php/jorunal/article/view/819/760
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Bismarckian pensions; Beveridgean pensions; Life span; Retirement age;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:voj:journl:v:70:y:2023:i:1:p:29-46:id:819. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivana Horvat (email available below). General contact details of provider: https://panoeconomicus.org/index.php/jorunal/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.