IDEAS home Printed from
   My bibliography  Save this paper

Race for Retirement


  • Hakola, Tuulia


The study analyses the effects of the pension system on the labour supply of the elderly in Finland. A significant change in the age structure of the population, combined with falling employment rates for the aged, can yield pressures on the financing of the mainly Pay-As-You-Go, Defined Benefit pension system. Empirical results provide some evidence that economic incentives matter also to the aged Finnish employees. It was verified by controlling a number of other variables, that if an individual was better off by postponing his retirement decision, he was more likely to continue working. Two simulations demonstrate that even if altering economic incentives has some of the desired impact of postponing retirement, this impact seemed rather small. The study therefore suggests the need to alter also age restrictions if the average retirement age needs to be altered radically.

Suggested Citation

  • Hakola, Tuulia, 1999. "Race for Retirement," Research Reports 60, VATT Institute for Economic Research.
  • Handle: RePEc:fer:resrep:60

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Huovinen, Pasi & Piekkola, Hannu, 2002. "Early Retirement and Use of Time by Older Finns," Discussion Papers 787, The Research Institute of the Finnish Economy.
    2. Huovinen, Pasi & Piekkola, Hannu, 2001. "Unemployment and Early Retirements of the Aged Workers in Finland," Discussion Papers 750, The Research Institute of the Finnish Economy.
    3. Laine, Veli, 2002. "Evaluating tax and benefit reforms in 1996-2001," Discussion Papers 280, VATT Institute for Economic Research.
    4. MacDonald, Bonnie-Jeanne & Cairns, Andrew J.G., 2011. "Three retirement decision models for defined contribution pension plan members: A simulation study," Insurance: Mathematics and Economics, Elsevier, vol. 48(1), pages 1-18, January.
    5. Hakola, Tuulia & Lindeboom, Maarten, 2001. "Retirement Round-bout: Early Exit Channels and Disability Applications," Discussion Papers 262, VATT Institute for Economic Research.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fer:resrep:60. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anita Niskanen). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.