The Return on Social Security with Increasing Longevity
Markus Knell ()
Working Papers from Oesterreichische Nationalbank (Austrian Central Bank)
In this paper I study the impact of increasing longevity on pay-as-you-go pension systems. First, I show that increasing longevity increases their internal rate of return. The size of the e ect di ers for di erent policy regimes. It is higher for the case where the retirement age is increased in order to keep the system in balance than for the case where the necessary adjustment is achieved by reducing pension bene ts. Second, I study optimally chosen retirement decisions and I show that the socially optimal policy involves a shorter working life than the private optimum. The social optimum can be implemented by the use of a PAYG system that combines an actuarial and a at pension.
Keywords: Pension System; Demographic Change; Increasing Life Expectancy; Re- tirement Decision (search for similar items in EconPapers)
JEL-codes: D63 H55 J1 J18 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (https://www.oenb.at/dam/jcr:2f24db8c-a1c8-4332-bec7-5196b51368cf/wp201.pdf [303 See Other]--> https://www.oenb.at/error_path/403.html?al_req_id=Y438We3yeKIk83uKr0k2nAAAAOg)
Journal Article: THE RETURN ON SOCIAL SECURITY WITH INCREASING LONGEVITY (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:onb:oenbwp:201
Ordering information: This working paper can be ordered from
Oesterreichische Nationalbank, Economic Studies Division, c/o Beate Hofbauer-Berlakovich, POB 61, A-1011 Vienna, Austria
The price is The price is Free subject to availability..
Access Statistics for this paper
More papers in Working Papers from Oesterreichische Nationalbank (Austrian Central Bank) P.O. Box 61, A-1011 Vienna, Austria. Contact information at EDIRC.
Bibliographic data for series maintained by Markus Knell and Helmut Stix ().