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Financing entitlements and promoting work: Does policy encourage early retirement?

Sita Slavov and Aspen Gorry

AEI Economic Perspectives, 2012

Abstract: Entitlement spending is projected to put a great deal of strain on the federal budget in coming years. A key factor underlying the growth of entitlement spending is the deteriorating ratio of workers to retirees. This problem is exacerbated by various policies that create disincentives for work at older ages. One way to reduce the fiscal burden of entitlement programs is to encourage longer working lives by minimizing these disincentives. This paper documents the recent trends in employment among older workers, summarizes the evidence on how policies influence retirement decisions, and describes several reforms that have the potential to increase employment among older workers.

Keywords: Retirement; Entitlements; AEI Economic Perspectives; Policy Papers (search for similar items in EconPapers)
JEL-codes: H (search for similar items in EconPapers)
Date: 2012
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Handle: RePEc:aei:journl:y:2012:id:15919