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Time Inconsistency and Delayed Retirement Decision: the French Pension Bonus

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  • Steve Briand

    (SAF - Laboratoire de Sciences Actuarielle et Financière - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon)

Abstract

With the increase in life expectancy and demographic shocks, several public policies in the last decades aim to encourage individuals to postpone retirement. One of them, the pension bonus, gives an increased pension if individuals retire beyond their Full Retirement Age. Previous ex post analyses found that the responsiveness to this type of financial incentives, which encourage to postpone retirement, is heterogeneous among agents and that the global effect is rather limited. Deriving from previous research in Behavioural Economics, this article analyses the impact of time inconsistency in the decision to delay retirement to get the bonus. Using public national survey data, short-term and long-term impatience are measured with questions on retiring motivations. After controlling for the endogeneity of the bonus knowledge, econometric results show that time-inconsistent agents are less likely to retire with the bonus. JEL codes: C35, J26.

Suggested Citation

  • Steve Briand, 2018. "Time Inconsistency and Delayed Retirement Decision: the French Pension Bonus," Working Papers hal-01891755, HAL.
  • Handle: RePEc:hal:wpaper:hal-01891755
    Note: View the original document on HAL open archive server: https://hal.science/hal-01891755
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    References listed on IDEAS

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    6. Mastrobuoni, Giovanni, 2009. "Labor supply effects of the recent social security benefit cuts: Empirical estimates using cohort discontinuities," Journal of Public Economics, Elsevier, vol. 93(11-12), pages 1224-1233, December.
    7. Luc Arrondel & André Masson, 2014. "Mesurer les préférences des épargnants : comment et pourquoi (en temps de crise) ?," Économie et Statistique, Programme National Persée, vol. 467(1), pages 5-49.
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    More about this item

    Keywords

    Time inconsistency; Claiming benefits; Pension Bonus;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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