Reforming retirement age in DB and DC pension systems in an aging OLG economy with heterogenous agents

TitleReforming retirement age in DB and DC pension systems in an aging OLG economy with heterogenous agents
Publication TypeJournal Article
Year of Publication2016
AuthorsTyrowicz, J, Makarski, K, Bielecki, M
JournalIZA Journal of Labor Policy
Volume5
Issue1
Date PublishedJan-12-2016
KeywordsEconomics, Pensions, Retirement Age, Welfare
Abstract

We analyze the effects of increasing the retirement age in two economies with overlapping generations and within cohort ex ante heterogeneity. The first economy has a defined benefit system, and the second economy is in transition from a defined benefit to a defined contribution. We find that if increase in the retirement age is phased in a way that allows agents to adjust, welfare is not reduced and welfare effects have a similar magnitude and between-cohort distribution in both types of the pension systems.

URLhttps://izajolp.springeropen.com/articles/10.1186/s40173-016-0067-8
DOI10.1186/s40173-016-0067-8
Short TitleIZA J Labor Policy
Citation Key8553