The gender gap in life expectancy and its implications on pension systems: a comparative analysis over OECD countries

As well known, longevity risk is a crucial element in the management of pension systems since its underestimation could have disastrous effects on public finances. This issue affects many OECD countries demographically elderly where pension expenditure represents a significant part of public expenditure. This contribution focuses on gender differences in survival at older ages and on the implication that gender-specific longevity risk has on National Social Security Systems. It is motivated by several recent findings on the Italian longevity experience for the determination of optimal retirement age-shifts necessary to match growing life expectancy at older ages, without neglecting the model risk arising when the model for the mortality projection is chosen. Specifically, a comparative analysis over OECD countries is pursued to assess the adequacy of the corresponding normal retirement age facing with growing life expectancy. The analysis is carried out by means of several graphical representations.