Introducing flexible retirement: a dynamic model

András Simonovits ()
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András Simonovits: ELKH KRTK KTI and BUT MI, Budapest, Hungary

No 2109, CERS-IE WORKING PAPERS from Institute of Economics, Centre for Economic and Regional Studies

Abstract: 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.

Keywords: retirement age; flexible retirement age; variable retirement age; transition cost (search for similar items in EconPapers)
JEL-codes: H11 H55 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2021-02
New Economics Papers: this item is included in nep-age, nep-ore and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:has:discpr:2109

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