Controlling the life expectancy gap using joint probabilities in t the design of survivor’s pensions

Abstract

The usage of different methodologies produces varying results in the estimation of life expectancies. This Master Thesis revolves around which are the most common approaches used for the calculation of the expected number of lived years, being the period and cohort methods, producing some important differences that are tried to be explained. The usage of period and cohort approaches incurs in different results for the expected wealth of households that are dependent on pensions received. We explain how important the concurrency of different survivorship pensions is and how it produces differences in the expected income for a couple after retirement.