 Flexible retirementAndrás Simonovits
Chapter Chapter 12 in Modeling Pension Systems, 2003, pp 114-130 from Palgrave Macmillan Abstract: Abstract Flexible retirement means that the age at which an employee retires is a choice variable for him. (For the much neglected case in which the employer chooses, see the survey by Spiezia (2002).) Anyone who wants to retire before normal retirement age may do so, but he will receive lower annual benefit since he contributes for a shorter period and draws the benefit for a longer expected period. Similarly, if somebody can (and is allowed to) work longer, he will receive higher annual benefit since he contributes for a longer period and obtains the benefit for a shorter expected period. It is obvious that an actuarially fair solution would be to reward work beyond normal retirement by the amount the Social Security saves by receiving the contributions for a longer period and paying benefits for a shorter period, and similarly to charge early retirees by as much as the Social Security loses by receiving contributions for a shorter period and paying benefits for a longer period (Sheshinski, 1978; Crawford-Lilien, 1981; Stock-Wise, 1990, Samwick, 1998; Gruber-Wise, eds. 1999 and Guegano, 2000). Keywords: Utility Function; Contribution Rate; Real Interest Rate; Optimal Length; Benefit Function (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-4039-3845-9_13 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.