Raising the Mandatory Retirement Age and its Effect on Long-run Income and Pay-as-you-go (PAYG) Pensions

2014 ◽  
Vol 65 (4) ◽  
pp. 619-645 ◽  
Author(s):  
Luciano Fanti
Keyword(s):  
Mandatory Retirement ◽  
Retirement Age ◽  
Long Run ◽  
Payg Pensions

LONGEVITY, RETIREMENT, AND CAPITAL ACCUMULATION IN A RECURSIVE MODEL WITH AN APPLICATION TO MANDATORY RETIREMENT

2009 ◽  
Vol 13 (3) ◽  
pp. 327-348 ◽  
Author(s):  
Jie Zhang ◽  
Junsen Zhang
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Capital Investment ◽  
Human Capital Investment ◽  
Mandatory Retirement ◽  
Retirement Age ◽  
Saving Rate ◽  
Recursive Model ◽  
Investment In Children ◽  
Long Run

This paper explores how retirement timing, together with life-cycle saving and human capital investment in children, responds to rising longevity in a recursive model with altruistic agents. We find that rising longevity raises the retirement age. If initial life expectancy is not too high, rising longevity also raises human capital investment in children and the saving rate. Through these channels, rising longevity can be conducive to long-run economic growth. A binding mandatory retirement age reduces human capital investment and the growth rate, raises the saving rate, and reduces welfare.

scholarly journals Actuarial deductions for early retirement

2021 ◽  
pp. 1-27
Author(s):  
Markus Knell
Keyword(s):  
Early Retirement ◽  
Pension System ◽  
Budget Constraint ◽  
Retirement Age ◽  
Single Individual ◽  
Internal Rate Of Return ◽  
Market Interest Rate ◽  
Long Run ◽  
Retirement Behavior ◽  
The Right

Abstract This paper studies how the rates of deduction for early retirement have to be determined in pay-as-you-go (PAYG) systems in order to keep their budget stable. The derivation of these deductions requires the use of a multiperiod intertemporal budget constraint that involves assumptions about the retirement behavior of past, present, and future cohorts. In general, it is not possible to calculate budget-neutral deductions from the budget constraint of a single individual who retires before the target retirement age—an approach that dominates the related literature. Only for specific cases one can use this second approach but then one has to adjust the discount rate to the assumption about collective retirement. If there is only one deviating individual, then the right choice is the market interest rate while for a stationary retirement distribution it is the internal rate of return of the PAYG system. In this case, the necessary deductions are lower than under the standard approach. This is also true for retirement ages that fluctuate randomly around a stationary distribution. Various long-run developments (e.g., increases in life expectancy or permanent changes in the average retirement age) might cause challenges for the sustainability of the pension system. These developments, however, can only be dealt with by adequate adjustments to the basic pension formulas and not by the use of deduction rates.

Key military appointment shores up Jokowi’s stability

2021 ◽  
Keyword(s):  
The State ◽  
Mandatory Retirement ◽  
Retirement Age ◽  
Intelligence Agency ◽  
Content Type ◽  
Security Personnel

Significance Andika is the son-in-law of AM Hendropriyono, a retired general and former head of the State Intelligence Agency who is an influential adviser to Jokowi. Andika's appointment will run to December 2022, when he will reach the mandatory retirement age of 58. Impacts Deployment of security personnel to Papua will increase. Jokowi will continue to rely heavily on Hendropriyono’s advice. As with Andika’s appointment, political calculations will be key in Jokowi’s next pick as TNI chief.

scholarly journals Does a raised mandatory retirement age influence managers’ attitudes to older workers?

2020 ◽  
Vol 5 (02) ◽  
pp. 122-136
Author(s):  
Per Erik Solem ◽  
Robert H. Salomon ◽  
Hans Christoffer Aargaard Terjesen
Keyword(s):  
Older Workers ◽  
Mandatory Retirement ◽  
Retirement Age

scholarly journals EMPLOYMENT AFTER NORMAL RETIREMENT AGE: EMPLOYERS’ MOTIVES AND EXPERIENCES

2019 ◽  
Vol 3 (Supplement_1) ◽  
pp. S129-S130
Author(s):  
Jaap Oude Mulders
Keyword(s):  
Older Workers ◽  
Population Aging ◽  
Developed Countries ◽  
Mandatory Retirement ◽  
Retirement Age ◽  
Opportunity Structures ◽  
Labor Market Dynamics ◽  
Employment Rates ◽  
Using Data ◽  
Retirement Systems

Abstract Due to population aging, older workers in developed countries are working much longer than previous cohorts. Some older workers even extend their careers beyond normal retirement age – or the age that is traditionally associated with retirement. While earlier work has studied employees’ motives and experiences while working after normal retirement age, motives and experiences of employers remain unexplored. Understanding employers’ perspectives is imperative for a better grasp of employees’ opportunity structures and labor market dynamics. This is especially relevant in countries with mandatory retirement systems, since here employer and employee need to negotiate a new contract after normal retirement age. I study employers’ motives to and experiences with employing older workers after normal retirement age using data from a 2017 survey among 1,312 Dutch employers. The Netherlands has mandatory retirement regulations but is also seeing an increase in employment rates after normal retirement age. Results show that 54% of employers have, in recent years, employed one or more older workers beyond their normal retirement age. This is especially common in education. 70% of employers are very positive about their previous experiences with employing older workers after normal retirement age, mostly because they had rehired older workers with unique knowledge and experience. However, employers also hardly ever took the initiative for such employment arrangements, instead leaving it to the older workers to show the desire to continue working. Although employers are largely positive, they see it as a limited phenomenon, and do not consider it a solution to labor shortages.

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