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CHAPTER I. Overview of gender issues in pension systems from different countries CHAPTER 2. Gender analysis of pension and labor legislation of the Republic of Moldova CHAPTER 3. Analysis of demographic context of gender issues in the Republic of Moldova CHAPTER 4. Labor market of the Republic of Moldova and its impact on the trends of pension system reform: gender aspects CHAPTER 5. Salaries and incomes CHAPTER 6. Informal employment CHAPTER 7. Issues of social breaks in employment CHAPTER 8. Gender issues of current pensioners CHAPTER 10. Gender analysis of the formulas for old-age pension calculation CHAPTER 11. Increase of the retirement age. Equalizing the retirement age?
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Gender aspects of the Republic of Moldova’s pension system
11.2. Individual pension burden or correlation between the duration of the able-bodied age and duration of life on pensionWhen determining the parameters of pension system (first of all on determining the retirement age) it is necessary to take into account along with the economic expediency the issues of social correctness, gender equality and their demographic component. In this relation a specific importance has the answer to the question: To answer this question we shall examine the indicator, equal to the correlation between the duration of the able-bodied age and duration of the life on pension. IC=(RA-15)/T, We shall name this indicator as individual coefficient of pension burden, since compared to the standard coefficient of pension burden (calculated as correlation between the number of able-bodied employed persons and number of pensioners), it does not characterize the burden “on pension system on the whole”, but the calculated burden on average-statistic citizen. As it was above-mentioned at present under the retirement age 57/62 in the Republic of Moldova the correlation between the duration of the able-bodied age and duration of the life on pension is one of the most unfavorable not only among the economically developed European countries, but also among CIS countries. The individual pension burden depends on the borders of the capacity for work, established in the country and residual population life expectancy (which depends on the mortality rate of the population of the able-bodied and pension age). Now under the retirement age of 57 years for women and 62 years for men, the woman for one year on pension should “work” 2,2 years, while the man – 3,6 years, ie. by 1,6 times more. It is also obviously that the individual pension burden on men and women shall differ considerably. We should remember that in case of change of the retirement age both components of the coefficient of individual pension burden shall change (the life expectancy on pension shall change and the able-bodied period, established by the legislation, shall increase simultaneously). It is to be taken into consideration that with age the residual life expectancy is reduced gradually, while the total life expectancy (age of living till the retirement + residual life expectancy ) is growing up. Since the mortality rate for men and women is different, but becoming closer with age, the gender differences in “the residual life expectancy” and correspondingly in “the total life expectancy” are also reduced gradually with age. For example, at the achievement by men of the age of 60 the residual life expectancy constitutes 14,1 years and the total life duration – 74,1 years, while for women – 17,2 and, correspondingly, 77,2 years. Thus, the gender difference in the general life expectancy shall constitute 3,1 years. At the achievement by men of the age of 65 the residual life expectancy shall constitute 11,3 years, while the total life duration – 76,3 years. As for women under the same age conditions – 13,7 and, correspondingly, 78,8 years. So, the gender difference in the general life expectancy shall constitute 2,4 years. At the achievement by men of the age of 70 their residual life expectancy shall constitute 8,9 years and the total life duration – 78,9 years; the same indicators for women – 10,7 and 80,7 years, and the gender difference – 1,8 years. And so on. As for men aged 90 the residual life expectancy shall be 3,1 years and the total life duration – 93,1 years, for women – 3,5 and 93,5 years. Thus, the gender difference in the general life expectancy shall constitute up to 0,4 years. Under the increase of the retirement age the changes in the residual life expectancy for men and women shall not be identical (even in case of equal increase of the retirement age for both sexes). Any variant of the retirement age increase shall entail gender-asymmetric changes of the individual pension burden. We shall try to evaluate more exactly the proportion of these changes under different variants of the retirement age increase. For this purpose we shall examine the changes of the values of these coefficients under different scenarios of the change/increase of the retirement age up to 62 years for men and women, up to 60 years for women and 65 years for men, up to 65 years for both men and women.
Table 6.
As it could be seen from the Picture 40 and Table 6 with age the correlation between the duration of the able-bodied age and duration of life on pension is increasing gradually (under all other equal conditions this correlation for women is always lower than for men), as well as gender differences related to those. The differentiation of the retirement age based on sex makes its corrections: in case of a lower retirement age the gender differences related to the correlation between the duration of the able-bodied age and duration of life on pension are increasing considerably. As it could be seen from the variants of the change of the retirement age, presented in the Table 6, the minimal gender differences in the values of the coefficient of individual pension burden are fixed at the age of 62 for both sexes. |
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