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Chapter 6 Early Retirement

In: Simulating an Ageing Population: A Microsimulation Approach Applied to Sweden

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Listed:
  • Kristian Bolin
  • Matias Eklöf
  • Daniel Hallberg
  • Sören Höjgård
  • Björn Lindgren

Abstract

In the 1990s, individuals aged 18–64 were eligible for disability insurance, if their work capacity was reduced by at least 25 percent (50 percent before 1993). In the beginning of the period, before 1991, disability insurance could also be granted for labor market reasons (i.e., if unemployed had been compensated long enough to exhaust their benefits – obtained benefits for 300 days). This possibility was gradually phased out after 1991. In 1995, the enforcement of the rules was tightened. When evaluating applications for disability pensions, local insurance offices now had to request a medical certificate and a work-related test of the applicant's degree of work capacity. Local offices also had to consult the applicant's employer, physician, or other qualified personnel, and even pay personal visits to the applicant. The possibilities for rehabilitating the applicant should also be investigated. From 1997, work incapacity should be evaluated in relation to all possible employment opportunities. Potential income changes resulting from changes in employment should not affect the evaluation4(National Social Insurance Board, 2005).

Suggested Citation

  • Kristian Bolin & Matias Eklöf & Daniel Hallberg & Sören Höjgård & Björn Lindgren, 2008. "Chapter 6 Early Retirement," Contributions to Economic Analysis, in: Simulating an Ageing Population: A Microsimulation Approach Applied to Sweden, pages 143-199, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:ceazzz:s0573-8555(07)00006-5
    DOI: 10.1016/S0573-8555(07)00006-5
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