Dear all, we kindly invite you to our next Theory and Policy Seminar Talk on Wednesday, October 30, 2024 from 4:00-5:30 pm (TU Wien, Freihaus Building, Conference Room Dekanat) (Wiedner Hauptstr. 8-10, 1040 Vienna – “Konferenzraum Dekanat”, 9th floor, green area (with elevator to the 8th floor and via staircase to the 9th floor) "Mortality by socio-economic class and its impact on retirement schemes: how to render the system fairer" Jennifer Alonso-García (https://jennifer.alonso.garcia.web.ulb.be/) Many OECD countries have addressed the issue of increased longevity by mainly increasing the retirement age. However, this kind of reforms may lead to substantial transfers from those with shorter lifespans to those that will live longer than the average, as they do not necessarily take into account the socio-economic differences in mortality. The contribution of our paper is therefore twofold. Firstly, we illustrate how both a Defined Benefit and a Notional Defined Contribution pay-as-you-go scheme can put the lower social economic classes at a disadvantage, when compared to the actuarially fair pensions. In contrast to that, higher classes experience a gain. This is due to the fact that mortality rates per socio-economic class are not considered by either scheme. Consequently, we propose a model that determines the parameters for each scheme and class which would render the pensions fairer even when no socio-economic mortality differences are considered. We also provide a live stream on Zoom: https://tuwien.zoom.us/j/67875612975 This is a joint seminar of the research groups FAM and ECON! Further Events: https://www.tuwien.at/en/mg/econ/events Best, Julia Hutter for Julia Eisenberg and Alexia Fuernkranz-Prskawetz Julia Hutter TU Wien Institute of Statistics and Mathematical Methods in Economics Research Group Economics Phone: +43 1 58801 10531 Mail: julia.hutter@tuwien.ac.at<mailto:julia.hutter@tuwien.ac.at> https://econ.tuwien.ac.at/