Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 5, 2019 erstellt
Description:
This paper develops a computational framework for inverting Gompertz-Makeham (GM) hazard rates, in a manner consistent with a compensation law of mortality for heterogenous populations, to define a Longevity-Risk-adjusted Global (LRaG) Age. To illustrate its salience and relative magnitude, the paper implements and calibrates this framework using rates from the Human Mortality Database (HMD). Among other things, this paper demonstrates that when properly benchmarked, the {\em longevity-risk-adjusted global age} of a 55-year-old Swedish male is 48, whereas a 55-year-old Russian male is closer in age to 67. The paper also discusses the connection between the LRaG age and the related concept of *biological* age. In a world of growing mortality heterogeneity, a new and distinct LRaG age could be used for pension and retirement policy. Perhaps a salient and transparent metric that adjusts chronological age for longevity risk might help capture the public's attention, educate them and induce them to take action to increase the odds of retirement success, by, for example, working longer and retiring later