Lifetime earnings and life expectancy

In this paper we test hypothesis that wealthier individuals live longer. Using a large micro data base of current and former retired participants covering years 2005 2011 from the Social Insurance Company our paper aims to study and explore trends and differentials in life expectancy based on lifetime earnings in Slovakia. Tobit and probit models confirm a positive relationship between life earning and life expectancy. Furthermore we estimate remaining life expectancy at age 62 especially of Slovak male pensioners. Despite low level of earnings variance, our findings indicate the difference of 8 years in life expectancy between the lowest and the highest income percentile in this group. Results of our analyses are in line with wide foreign research on this topic. The outcomes of the conditional life expectancy may further provide normative implications for the Slovak merit based pension system and the first pillar settings.