Changes in pension take-up and retirement in the context of increasing the pension age: the case of Estonia in the 2000s

Allan Puur, Lauri Leppik and Martin Klesment

Post-Communist Economies, 2015, vol. 27, issue 4, 497-516

Abstract: This article looks into the effects of increasing the statutory pension age on pension take-up and on employment before and after pension take-up in Estonia in 2002-11. We use individual-level administrative data from the pension register of the Estonian National Social Insurance Board and a set of analytical indicators to capture the pension take-up and employment exit processes. The results reveal a relatively successful adjustment to the increase in pension age. The age gap between take-up of normal and early retirement (old-age) pension has not widened and the increase in the statutory pension age has moved exit from employment proportionally towards a later age. At the same time, a marked increase in the take-up of incapacity pensions, accelerated during the economic recession, has significantly reduced the overall effect of pension age reform.

Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:taf:pocoec:v:27:y:2015:i:4:p:497-516

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DOI: 10.1080/14631377.2015.1084719

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