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Qualitative Analysis of Early Pension Withdrawal in Defined Benefit Schemes: A Case National Pension Scheme Authority (NAPSA)

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  • Dr Sidney Kawimbe

    (ZCAS University)

  • Ms Buumba Banda

    (NAPSA)

Abstract

This paper aims to look at model retirement behavior with a focus on early retirement where there is an option for “buy†outs†. An employer can offer employees generous pension programs if the employees agree on early retirement. Earlier studies have neglected such offers, but in doing so, estimates of the individuals’ responses to financial incentives in a retirement decision are likely to be biased upward. Design/methodology/approach The authors propose an estimation strategy where the retirement decision and the accesses to early retirement pension (ERP) offers are estimated in a simultaneous equation system, yielding unbiased estimates of the model parameters. They apply the model using detailed Swedish register data.

Suggested Citation

  • Dr Sidney Kawimbe & Ms Buumba Banda, 2023. "Qualitative Analysis of Early Pension Withdrawal in Defined Benefit Schemes: A Case National Pension Scheme Authority (NAPSA)," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(12), pages 1839-1860, December.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:12:p:1839-1860
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    References listed on IDEAS

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    1. Sandra Blome & Kai Fachinger & Dorothee Franzen & Gerhard Scheuenstuhl & Juan Yermo, 2007. "Pension Fund Regulation and Risk Management: Results from an ALM Optimisation Exercise," OECD Working Papers on Insurance and Private Pensions 8, OECD Publishing.
    2. Zvi Bodie & Alan J. Marcus & Robert C. Merton, 1988. "Defined Benefit versus Defined Contribution Pension Plans: What are the Real Trade-offs?," NBER Chapters, in: Pensions in the U.S. Economy, pages 139-162, National Bureau of Economic Research, Inc.
    3. Charles Kivunja & Ahmed Bawa Kuyini, 2017. "Understanding and Applying Research Paradigms in Educational Contexts," International Journal of Higher Education, Sciedu Press, vol. 6(5), pages 1-26, October.
    4. Yu-Wei Hu & Fiona Stewart, 2009. "Pension Coverage and Informal Sector Workers: International Experiences," OECD Working Papers on Insurance and Private Pensions 31, OECD Publishing.
    5. Pedraza Morales,Alvaro Enrique & Fuentes,Olga & Searle,Pamela & Stewart,Fiona Elizabeth, 2017. "Pension funds and the impact of switching regulation on long-term investment," Policy Research Working Paper Series 8143, The World Bank.
    6. Fiona Stewart & Juan Yermo, 2009. "Pensions in Africa," OECD Working Papers on Insurance and Private Pensions 30, OECD Publishing.
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