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Defined Contribution vs Defined Pension: Reforming the Legal Retirement Age

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Author Info
Juan A. Lacomba () (Department of Economic Theory and Economic History, University of Granada.)
Francisco M. Lagos () (Department of Economic Theory and Economic History, University of Granada.)

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Abstract

In this paper we analyze the effects of changing Social Security parameters on the optimal legal retirement age. Two Social Security Systems are studied, with opposite results. When the pension scheme has a defined contribution, a more redistributive system will delay the preferred legal retirement age. On the other hand, when the pension benefit is the defined parameter, the increase in the redistribution level will lower this preferred age.

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File URL: http://www.ugr.es/~teoriahe/RePEc/gra/wpaper/thepapers08_13.pdf
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Publisher Info
Paper provided by Department of Economic Theory and Economic History of the University of Granada. in its series ThE Papers with number 08/13.

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Length: 10 pages
Date of creation: 22 Dec 2008
Date of revision:
Handle: RePEc:gra:wpaper:08/13

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Find related papers by JEL classification:
H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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  1. Kahn, James A., 1988. "Social security, liquidity, and early retirement," Journal of Public Economics, Elsevier, vol. 35(1), pages 97-117, February. [Downloadable!] (restricted)
  2. Cremer, Helmuth & Pestieau, Pierre, 2000. "Reforming our pension system: Is it a demographic, financial or political problem?," European Economic Review, Elsevier, vol. 44(4-6), pages 974-983, May. [Downloadable!] (restricted)
  3. Casamatta, Georges & Cremer, Helmuth & Pestieau, Pierre, 2000. "The Political Economy of Social Security," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  4. Crawford, Vincent P & Lilien, David M, 1981. "Social Security and the Retirement Decision," The Quarterly Journal of Economics, MIT Press, vol. 96(3), pages 505-29, August. [Downloadable!] (restricted)
  5. J. Ignacio Conde-Ruiz & Vincenzo Galasso, . "Early retirement," Working Papers 2003-03, FEDEA. [Downloadable!]
    Other versions:
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