Introducing flexible retirement: A dynamic model

Typically economists arguing for flexible (or variable) retirement age, but they rely on steady state analysis. In this paper we consider the replacement of a mandatory retirement system with a flexible one in real time. We show that even if early retirement is duly punished, diminishing the effective retirement age by 1 year raises the first year's and the total expenditures during transition by 8% and 70% of the original annual expenditure, respectively.

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Year of publication:	2021
Authors:	Simonovits, András
Publisher:	Budapest : Hungarian Academy of Sciences, Institute of Economics, Centre for Economic and Regional Studies
Subject:	retirement age \| flexible retirement age \| variable retirement age \| transition cost

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Series:	CERS-IE Working Papers ; CERS-IE WP - 2021/9
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	1750959984 [GVK] hdl:10419/237553 [Handle] RePEc:has:discpr:2109 [RePEc]
Classification:	H11 - Structure, Scope, and Performance of Government ; H55 - Social Security and Public Pensions
Source:	EconStor

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