IB#21

Introduction

The United States is the richest major country in the world in terms of per capita gross domestic product (GDP). Since longevity is clearly associated with income, America’s older citizens must live longer than their counterparts in other large industrial nations. Right? Wrong! Among the 30 developed countries that comprise the Organization for Economic Cooperation and Development (OECD), American life expectancy at age 65 for both males and females falls in the middle of the group. More than that, we are not expected to catch up anytime soon. The improvement in U.S. life expectancy, as projected by the Social Security Administration, implies that a 65-year-old American woman in 2050 will live about as long as a 65-year-old Japanese woman lives today. What are the implications of this unimpressive showing? And what explains the poor U.S. performance?...

For full paper in PDF

All the authors are with the Center for Retirement Research (CRR) at Boston College. Alicia H. Munnell is the director of the CRR and the Peter F. Drucker Professor of Management Sciences at Boston College’s Carroll School of Management. James G. Lee and Robert E. Hatch are research assistants at the CRR. The authors thank Gary Burtless, Angus Deaton, Steve Goss, Ron Lee, and Gene Steuerle for helpful comments. They may not agree with every aspect of the analysis, but they greatly improved the final product.