Educational differences in mortality and health and implications of the further uniform increase in the state pension age

 What is the focus of the paper? 

The study focuses on the effects of increasing the state pension age (AOW) in the Netherlands, which is linked to the increasing life expectancy. However, the current policy does not take into account the differences in health and life expectancy among socioeconomic groups. This paper examines how this increase has unequal effects on people with different levels of education. 

What are the key findings? 

The results show that, for all levels of education, the remaining life expectancy (measured at age 65) is likely to continue rising, but low-educated individuals will not keep pace with the increases seen among high-educated individuals. The outlook for low-educated women is particularly unfavorable. The adverse effects already experienced by the low-educated as a result of uniform increases in the state pension age are expected to increase in the future. For example, for low-educated men and women, the number of years they experience poor health before reaching the state pension age is expected to reach 6 years by 2030. High-educated individuals are likely to even enjoy several healthy years after retirement.

 What are the implications? 

The current linkage of the state pension age to average life expectancy disproportionately disadvantages low-educated individuals. This raises questions about the fairness of the current pension system. Introducing variation in retirement ages and a more flexible approach to pension policy could help address the health and life expectancy inequalities. The researchers advocate to explore which options and tools are available to address differences in life expectancy and health in the state pension and retirement legislation. This requires a multidisciplinary approach, incorporating perspectives from legal, ethical, labor, public health, demographic, actuarial, and financial viewpoints.