August 30, 2018 13:30
Photo : Freepik
According to the latest report of the institute C. D. Howe institute, the gender gap in longevity between the rich and the poor persists for years in Canada. The latest results indicate that men more affluent live eight years longer than those who are less fortunate, which represents a period of life 10 % longer. Among women, the gap is three years.
The report notes that the gap in life expectancy between people with low-income and high-income in Canada, however, did not increase with time and the improvement of longevity is evident to all income levels.
“We have no evidence that the relationship income-longevity is causal. It is possible that Canadians with a higher income also have better education and habits of the different life that influence their life expectancy, ” explained Kevin Melligan, author of the report.
The increase of the life expectancy of Canadians leads to additional costs related to age-related among others to the pension and health care.
The report notes that the impact of schemes on the pensions is direct. If those who live the longest affect the annual pension benefits the highest, the total cost of pension payments may be higher than expected. In addition, the longevity differential alters the net balance of pension contributions and pension benefits between the highest income and those below.
Markets pension private are shaped by the expectations of longevity of the different potential purchasers of annuity products, says C. D. Howe institute. In addition, the report highlights that the longevity of different groups of Canadians affects the value of the public programs for retirement income and the welfare of the society.