Incentives, Health, and Retirement - Evidence from a Finnish Pension Reform

Joonas Ollonqvist (), Kaisa Kotakorpi (), Mikko Laaksonen (), Pekka Martikainen (), Jukka Pirttilä and Lasse Tarkiainen ()
Additional contact information
Joonas Ollonqvist: Finnish Institute for Health and Welfare
Kaisa Kotakorpi: Tampere University, Finnish Centre of Excellence in Tax Systems Research
Mikko Laaksonen: Finnish Centre for Pensions
Pekka Martikainen: University of Helsinki, Max Planck Institute for Demographic Research, and Max Planck – University of Helsinki Center for Social Inequalities in Population Health
Lasse Tarkiainen: University of Helsinki

No 11, Working Papers from Finnish Centre of Excellence in Tax Systems Research

Abstract: We analyse the effects of changes in retirement incentives on retirement behaviour, utilising a Finnish pension reform implemented in 2005. The reform generated financial incentives to postpone retirement for some groups of individuals. Using detailed administrative data on individual health, we focus on whether individual reactions to incentives vary according to health status, and analyse whether individuals with poor health are also able to take advantage of the potential monetary benefits associated with the reform. We find that many types of individuals react to retirement incentives, and the reaction does not vary according to health status in a systematic way. Hence there does not seem to be a trade-off between providing incentives to postpone retirement and equal treatment of individuals with different health status.

Keywords: Pension reform; retirement incentives; health (search for similar items in EconPapers)
JEL-codes: H55 J26 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2023-05
New Economics Papers: this item is included in nep-age, nep-eur, nep-hea, nep-lma, nep-mfd and nep-pbe
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Published in FIT Working Paper Series, Finnish Center of Excellence in Tax Systems Research

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Related works:
Working Paper: Incentives, Health, and Retirement: Evidence from a Finnish Pension Reform (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:fit:wpaper:11

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