The life expectancy coefficient

The life expectancy coefficient for 2011 is 0.98689. The life expectancy coefficient is determined at the age of 62, separately for each age cohort. Life expectancy coefficient 0.98689 is used to adjust the starting old-age pensions of those born in 1949.

The purpose of the life expectancy coefficient is to steer part of the increase in life expectancy to the active working years, thus limiting the increase in pension expenditure caused by prolonged life expectancies.

The diminishing impact that the coefficient has on the pension may be balanced by remaining at work longer.

10.06.2011