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Increasing the State Pension Age, the Recession and Expected Retirement Ages

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  • Alan Barrett

    (Economic and Social Research Institute; The Irish Longitudinal Study on Ageing (TILDA), Trinity College Dublin)

  • Irene Mosca

    (The Irish Longitudinal Study on Ageing (TILDA), Trinity College Dublin)

Abstract

In March 2010, the Irish government announced that the age at which the state pension is paid would be raised to 66 in 2014, 67 in 2021 and 68 in 2028. One typical objective of such policy reforms is to provide an incentive for later retirement. The question we address in this paper is whether the expected retirement ages of Irish individuals aged 50 to 64 changed as a result of the policy announcement. The data we use are from the Irish Longitudinal Study on Ageing (TILDA). Our findings show that there was no noticeable break in expected retirement ages before and after 3 March, 2010 (the day on which the policy announcement was made). Also during 2010, the economic news became increasingly bad as the full scale of the fiscal and banking crises in Ireland emerged. The data suggest that there was a reduction in the proportion of people planning to retire at age 65 after 30 September, 2010, the day that the full scale of the banking crisis emerged.

Suggested Citation

  • Alan Barrett & Irene Mosca, 2013. "Increasing the State Pension Age, the Recession and Expected Retirement Ages," The Economic and Social Review, Economic and Social Studies, vol. 44(4), pages 447-472.
    • Handle: RePEc:eso:journl:v:44:y:2013:i:4:p:447-472
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    References listed on IDEAS

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    1. Bottazzi, Renata & Jappelli, Tullio & Padula, Mario, 2006. "Retirement expectations, pension reforms, and their impact on private wealth accumulation," Journal of Public Economics, Elsevier, vol. 90(12), pages 2187-2212, December.
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    Cited by:

    1. Axel Börsch-Supan & Tabea Bucher-Koenen & Michela Coppola & Bettina Lamla, 2015. "Savings In Times Of Demographic Change: Lessons From The German Experience," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 807-829, September.
    2. Börsch-Supan Axel & Coppola Michela & Rausch Johannes, 2015. "Die „Rente mit 63“: Wer sind die Begünstigten?: Was sind die Auswirkungen auf die Gesetzliche Rentenversicherung?," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 16(3), pages 264-288, October.
    3. Börsch-Supan, Axel & Coppola, Michela & Rausch, Johannes, 2014. "Die Rente mit 63: Wer sind die Begünstigten? Was sind die Auswirkungen auf die Gesetzliche Rentenversicherung?," MEA discussion paper series 201417, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    4. Struffolino, Emanuela & Zaccaria, Daniele, 2020. "Did You Realize your Preferences for Early Retirement? Insights on the Agency-Within-Structure Mechanism across Welfare Regimes," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 34(1), pages 33-58.

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