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Expected retirement age and pension benefits in Austria: evidence from survey data

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Abstract

In this paper we present evidence on Austrians’ expectations about their retirement age and the size of their pension benefits. We find that young people expect to retire at an older age compared to the actual age. The answers indicate that this increase in the expected retirement age might be sufficient to counterbalance the forecasted rise in life expectancy over the next decades. Furthermore, the increase is also approximately in line with the assumptions that underlie official forecasts about the development of pension expenditures. People in Austria also expect to receive less pension benefits, i.e. they expect net replacement rates to decrease, although in this case our results are less conclusive. In general, there exists a considerable degree of uncertainty, in particular among younger people. Furthermore, we find that the main structure of the new pension account system does not seem to be well understood. This suggests that the rules of the new system could be better communicated (e.g. via individualized pension account information).

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  • Markus Knell & Esther Segalla & Andrea Weber, 2015. "Expected retirement age and pension benefits in Austria: evidence from survey data," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 35-57.
    • Handle: RePEc:onb:oenbmp:y:2015:i:3:b:3
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    Cited by:

    1. Debets, Steven & Prast, Henriette & Rossi, Mariacristina & van Soest, Arthur, 2018. "Pension Communication in the Netherlands and Other Countries," Discussion Paper 2018-047, Tilburg University, Center for Economic Research.
    2. Prammer, Doris, 2019. "How does population ageing impact on personal income taxes and social security contributions?," The Journal of the Economics of Ageing, Elsevier, vol. 14(C).
    3. Chłoń-Domińczak, Agnieszka & Strzelecki, Paweł & Łątkowski, Wojciech, 2020. "Pension reforms or consequences of the economic crisis? Measuring the changes of pension incomes in selected EU countries using APC approach," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).

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    More about this item

    Keywords

    pension system; retirement age; replacement rate; subjective expectations;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations

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