Early Retirement Policy in the Presence of Competing Exit Pathways: Evidence from Policy Reforms in Finland

2010 ◽  
Author(s):  
Tomi Kyyrä
Keyword(s):  
Early Retirement ◽  
Policy Reforms ◽  
Retirement Policy

scholarly journals Assessing the Financial Sustainability of the Pension Plan in China: The Role of Fertility Policy Adjustment and Retirement Delay

2019 ◽  
Vol 11 (3) ◽  
pp. 883 ◽  
Author(s):  
Huan Wang ◽  
Jianyuan Huang ◽  
Qi Yang
Keyword(s):  
Pension System ◽  
Population Aging ◽  
Pension Plan ◽  
Leslie Matrix ◽  
Financial Sustainability ◽  
System Reform ◽  
Policy Reforms ◽  
Demographic Shift ◽  
Second Child ◽  
Retirement Policy

Population aging is creating serious challenges for the sustainability of China’s pension system. To mitigate the adverse impact of the demographic shift, China has recently introduced fertility and retirement policy reforms. The research presented in this paper primarily evaluates the impacts of recent reforms on the financial sustainability of China’s Urban Employees’ Pension Plan (UEPP). By using the Leslie matrix and actuarial models, the financial sustainability of the UEPP from 2019 to 2070 is projected and evaluated under a set of assumed policy reform scenarios. The results indicate that an imbalance in the pension fund would occur in the early 2020s and then expand under existing policies. Fertility adjustment, retirement delay, or combination reforms would not fundamentally solve this financial crisis in the long term. When 100% of couples have a second child and the retirement age is increased to 65, the current and accumulated pension deficits would drop by 50.05–67.56% and 35.88–54.23% between 2040 and 2070, respectively. Supplementary policy measures should be designed to encourage childbearing and retirement delay, including family support policies and top-designed pension system reform policies.

Af- en toename van arbeidspotentieel als beleidsthema. Leeftijdgericht arbeidsmarktbeleid in organisatie-intern perspectief

2007 ◽  
Vol 23 (3) ◽  
Author(s):  
Jo Thijssen
Keyword(s):  
Labour Market ◽  
Older Workers ◽  
Early Retirement ◽  
Labour Force ◽  
Replacement Policy ◽  
Labour Market Policy ◽  
Market Policy ◽  
Age Related ◽  
Retirement Policy ◽  
The Impact

De- and increase of the labour force as a subject of policy. Ageing-related labour market policy from an organisational perspective. De- and increase of the labour force as a subject of policy. Ageing-related labour market policy from an organisational perspective. The Netherlands, like many other Western countries, are used to a long tradition of pension policies opting for 65 as the standard retirement age, but from the eighties of the last century a massive number of older workers retired early opening positions for younger workers: a replacement policy to cope with unemployment. This early retirement policy reduced the amount of workers available for the labour market, but the influence on the proportion of working and non-working people was not significant. That changed dramatically because of recent demographic developments. As a reaction to the increasing ageing of the population the government is taking several decisions which have to promote working longer. However, the impact at organisational level is modest, although many companies are concerned with new older worker policies. Recent research findings offer an overview of responsible causes: especially the role of the managers of older workers is very important. Reflecting on the status quo this contribution will finish with three possible scenario’s for the future: 1 the repression scenario, raising obstacles to hinder early retirement; 2 the seduction scenario, creating attractive conditions to work longer; 3 the differentiation scenario, meeting the age-related interpersonal differences in employment opportunities and restrictions.

Early-retirement reform: can it and will it work?

2002 ◽  
Vol 22 (2) ◽  
pp. 209-231 ◽  
Author(s):  
HENDRIK P. VAN DALEN ◽  
KÈNE HENKENS
Keyword(s):  
Government Policy ◽  
Older Workers ◽  
Financial Incentives ◽  
Early Retirement ◽  
Central Government ◽  
Labour Force ◽  
Policy Reforms ◽  
Policy Objective ◽  
Long Run ◽  
Retirement Intentions

Early retirement from the labour force has become standard practice for most employees in the industrialised world. However, as a result of the rising costs of early-retirement schemes, curbing the outflow of older workers from the labour force has become a central government policy objective. Early-retirement reforms under which benefits are financed on a more actuarially neutral basis are currently being implemented in The Netherlands. At present it is not clear how older workers will react to these policy reforms. In this article we examine the extent to which (Dutch) older workers are inclined to change their retirement intentions in response to new early-retirement arrangements. On the basis of a labour market and a population survey we examine retirement intentions under alternative early-retirement policies. The overall conclusion is that the retirement reform may lead to a substantial delay of the retirement date, but that in practice factors other than financial incentives are powerfully at work. This is also reflected in the long-run early-retirement trend. This trend presents demographers and economists with a puzzle, because while a break can be identified in the time series, it set in before the early-retirement reforms were put into practice.

scholarly journals Effects of Early Retirement Policy Changes on Working until Retirement: Natural Experiment

2019 ◽  
Vol 16 (20) ◽  
pp. 3895 ◽  
Author(s):  
Boot ◽  
Scharn ◽  
van der Beek ◽  
Andersen ◽  
Elbers ◽  
...  
Keyword(s):  
Labor Market ◽  
Labor Supply ◽  
Older Workers ◽  
Early Retirement ◽  
Natural Experiment ◽  
Retirement Age ◽  
Retirement Benefits ◽  
Pension Reforms ◽  
Retirement Policy ◽  
To Receive

Many European countries have implemented pension reforms to increase the statutory retirement age with the aim of increasing labor supply. However, not all older workers may be able or want to work to a very high age. Using a nation-wide register data of labor market transitions, we investigated in this natural experiment the effect of an unexpected change in the Dutch pension system on labor market behaviors of older workers. Specifically, we analyzed transitions in labor market positions over a 5-year period in two nation-wide Dutch cohorts of employees aged 60 years until they reached the retirement age (n = 23,703). We compared transitions between the group that was still entitled to receive early retirement benefits to a group that was no longer entitled to receive early retirement benefits. Results showed that the pension reform was effective in prolonging work participation until the statutory retirement age (82% vs. 61% at age 64), but also to a larger proportion of unemployment benefits in the 1950 cohort (2.0%–4.2%) compared to the 1949 cohort (1.4%–3.2%). Thus, while ambitious pension reforms can benefit labor supply, the adverse effects should be considered, especially because other studies have shown a link between unemployment and poor health.

Rentenreform und Rentenzugangsentscheidung – Eine numerische Gleichgewichtsanalyse / Pension Reform and Endogenous Retirement – a Computable General Equilibrium Analysis

2009 ◽  
Vol 229 (4) ◽  
Author(s):  
Manuel Kallweit
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Early Retirement ◽  
Pension Reform ◽  
Policy Implications ◽  
Equilibrium Analysis ◽  
Retirement Age ◽  
Policy Reforms ◽  
Retirement Decision ◽  
Endogenous Retirement

SummaryThe paper presents a numerical general equilibrium model in which agents decide about their retirement age. In this context policy reforms like an increase of the normal retirement age, higher discounts for early retirement or the introduction of flat or minimum pensions are simulated. While future generations benefit from the first two reforms, they suffer from the latter. There are three central findings: First, higher discounts have a stronger effect on the retirement decision than an increase in normal retirement age. Second, the timing of retirement is significantly affected by an introduction of flat pensions. Third, models with an explicit retirement decision can lead to different policy implications compared to models in which retirement age is exogenous.

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