Working Papers

Joanne Kaa Earl, Mydair Hunter and Hazel Bateman

Abstract:Objectives: Downsizing is the term used to describe the move to a smaller dwelling and the decumulation of possessions, often taking place at older age. Two psychological theories: Selection, Optimisation and Compensation (SOC) and Time Perspective (TP); were applied to explain post-downsizing perspectives.

Method: Participants were community dwelling older adults (N = 352) aged 55 years and over who downsized during the preceding five years. An online survey was used to collect data about factors determining decision-making as well as psychological aspects of the downsizing experience including regret, retirement adjustment, satisfaction with life, stress, and distress.

Results: In general only a small proportion (17.6%) of participants indicated regret about moving. Consistent with the SOC theory younger people were more highly represented in the group expressing regret. Lower levels of satisfaction with the move were associated with a Past Negative Time Perspective, lower levels of life satisfaction and higher levels of stress and psychological distress. The top five factors for downsizing included: house was too big; to be closer to family; lifestyle preferences; yard too hard to manage; and alleviation of financial strain.

Conclusion: Whilst most people do not express regret with the move, it can be a stressful process. Some factors associated with lower levels of satisfaction such as Past Negative Time Perspective may be more difficult to change than others. Understanding the post-downsizing experience of others can help better prepare people before they move to anticipate responses and possibly contribute to better retirement adjustment.

Keywords: Downsizing, Time Perspective, Regret, Older adults

Anca-Stefania Jijiie, Jennifer Alonso-García and Séverine Arnold (-Gaille)

Abstract: Many OECD countries have addressed the issue of increased longevity by mainly increasing the retirement age. However, this kind of reforms may lead to substantial transfers from those with shorter lifespans to those that will live longer than the average, as they do not necessarily take into account the socio-economic differences in mortality. The contribution of our paper is therefore twofold. Firstly, we illustrate how both a Defined Benefit and a Notional Defined Contribution Pay-As-You-Go scheme can put the lower social economic classes at a disadvantage, when compared to the actuarially fair pensions. In contrast to that, higher classes experience a gain. This is due to the fact that mortality rates per socio-economic class are not considered by either scheme. Consequently, we propose a model that determines the parameters for each scheme and class which would render the pensions fairer even when no socio-economic mortality differences are considered.

Keywords: retirement age, pay-as-you-go, public pensions, adequacy, fairness, class-specific parameters

Sarah Kaakai, Héloïse Labit Hardy, Séverine Arnold (-Gaille) and Nicole El Karoui

A growing number of studies indicate a widening of socioeconomic inequalities in mortality over the past decades. It has therefore become crucially important to understand the impact of heterogeneity and its evolution on the future mortality of heterogeneous populations. In particular, recent developments in multi-population mortality have raised a number of questions, among which is the issue of evaluating cause-of-death reduction targets set by national and international institutions in the presence of heterogeneity. The aim of this paper is to show how the study of the population data and the population dynamics framework contribute to addressing these issues, by providing a new viewpoint on the evolution of aggregate mortality indicators in the presence of heterogeneity. Our findings rely on two unique datasets on the English population and cause-specific number of deaths by socioeconomic circumstances, over the period 1981-2015. The analysis of the data first highlights the complexity of recent demographic developments, characterized by significant composition changes in the population, with considerable variations according to the age class or cohort, along with a widening of socioeconomic inequalities. We then introduce a dynamic framework for studying the impact of composition changes on the mortality of the global population. In particular, we are interested in quantifying the impacts of cause-of-death mortality reduction in comparison with changes of composition in a heterogeneous population. We show how a cause of death reduction could be compensated for in the presence of heterogeneity, which could lead to misinterpretations when assessing public policies impacts and/or for the forecasting of future trends.

Keywords: Population Dynamics, Deprivation, Heterogeneity, Cause-of-Death Mortality, Cohort Effect