The analyses included in the report show that there are big socio-economic differences in mortality, especially for men, and they appear to have become bigger over time. The report discusses implications of mortality differentials for five major areas of pension policy: the progressivity of the pension system, the pension eligibility age, the retirement incentives, future pension expenditures and private pensions. The empirical work shows that the mortality differentials reduce progressivity in pension systems. Moreover, there is empirical evidence that raising retirement age is not more unfair to socio-economic groups with lower life expectancy.