Equivalent lifetime income is more equally distributed than individual (non-equivalent) lifetime income. The assumption that lifetime income inequality is smaller than the annual income inequality is confirmed by our results. However, the difference between both appears to be rather small, in...

This paper concerns the impact of the lifespan on the redistributive effect of the social security system when considering lifetime income. It is shown that with the exception of the old age pensions, the impact is very small. It is also doubted whether annualization has to be applied.