Study warns pension rules based on average life expectancy penalise low‑income workers

Pere López Agràs, a doctoral candidate at the University of Barcelona and former Andorran economy minister and social-democratic leader, will present his research tomorrow in the inaugural session of the University of Andorra’s new "Píndoles de recerca" public outreach series. The talk takes place at 10:30 in the university auditorium (6th floor), is in Catalan and is open to the public.

López’s work, presented under titles such as "Is life expectancy still an equitable parameter for shaping Pension Policies?" and "Rethinking Pension Equity: The Challenge of Longevity Gaps by Income," examines how persistent differences in life expectancy by income affect the fairness and sustainability of public pension systems. Using individual-level microdata on longevity, income trajectories, contributions and benefits, his research documents large divergences hidden by national average life-expectancy figures.

The study finds that national averages can mask substantial gaps between socioeconomic groups: higher-income individuals tend to live significantly longer than lower-income individuals, and reforms that lengthen working lives or raise statutory retirement ages do not affect all groups equally. López argues that measures such as delaying retirement age can disproportionately penalize lower-income workers, many of whom may die earlier and therefore are less likely to benefit from extended pension entitlements.

His doctoral project is organised in three phases and compares trends across countries including Spain, the United Kingdom and Denmark. The research has already yielded results presented at international conferences and was awarded the Best Poster prize at the World Economic History Congress 2025 in Lund, Sweden. López expects to complete his thesis work in the coming years and to present final findings at future scholarly meetings.

At the public presentation he will summarise the recent phases of his work and its policy implications, questioning the routine use of average life expectancy as a neutral parameter for pension design and highlighting the need to consider equity across income groups. The talk is scheduled to last around half an hour and will be followed by discussion.