scholarly journals Endogenous Retirement Behavior of Heterogeneous Households Under Pension Reforms

2018 ◽  
Author(s):  
Axel H. BBrsch-Supan ◽  
Klaus HHrtl ◽  
Duarte Nuno Leite ◽  
Alexander Ludwig
Keyword(s):  
Pension Reforms ◽  
Retirement Behavior ◽  
Endogenous Retirement

scholarly journals Endogenous Retirement Behavior of Heterogeneous Households Under Pension Reforms

2018 ◽  
Author(s):  
Axel H. Börsch-Supan ◽  
Klaus Härtl ◽  
Duarte Nuno Leite ◽  
Alexander Ludwig
Keyword(s):  
Pension Reforms ◽  
Retirement Behavior ◽  
Endogenous Retirement

scholarly journals Reference Points for Retirement Behavior: Evidence from German Pension Discontinuities

2021 ◽  
Vol 111 (4) ◽  
pp. 1126-1165
Author(s):  
Arthur Seibold
Keyword(s):  
Administrative Data ◽  
Direct Effect ◽  
Financial Incentives ◽  
Reference Points ◽  
Pension Benefit ◽  
Reference Dependence ◽  
Pension Reforms ◽  
Retirement Behavior ◽  
Effective Policy ◽  
The Universe

This paper studies the large concentration of retirement behavior around statutory retirement ages, a puzzling stylized fact. To investigate this fact, I estimate bunching responses to 644 pension benefit discontinuities, using administrative data on the universe of German retirees. Financial incentives alone cannot explain retirement patterns, but there is a large direct effect of statutory retirement ages. I argue that the framing of statutory ages as reference points for retirement provides a plausible explanation. Simulations based on a model with reference dependence highlight that shifting statutory ages via pension reforms is an effective policy to influence retirement behavior. (JEL D91, H55, J26, J32)

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.

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