Spousal and survivor benefits in option value models of retirement: an application to Belgium

Alain Jousten and Mathieu Lefebvre

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Abstract: We study retirement incentives with an augmented reduced form option value model à la Stock and Wise (1990). We propose methodological extensions to better reflect the respective incentives faced by singles and couples. Our results show that a more comprehensive modeling of couples' incentives leads to very different patterns of retirement incentives – particularly for women. We apply the new indicators to data from the Survey of Health, Ageing and retirement in Europe in Belgium and find two key results. First, contrary to several previous studies, we obtain a positive signed income effects. Second, we find very different retirement incentives for men and women, with little flexibility in the retirement decision for men and substantially more flexibility for women as a function of financial incentive and household composition.

Keywords: Retirement; Social security; Dependent benefits (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

Published in Journal of Pension Economics and Finance, 2019, 18 (1), pp.66-87. ⟨10.1017/S1474747217000324⟩

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Related works:
Journal Article: Spousal and survivor benefits in option value models of retirement: an application to Belgium (2019)
Working Paper: Spousal and Survivor Benefits in Option Value Models of Retirement: An Application to Belgium (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02180074

DOI: 10.1017/S1474747217000324

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