Postponing Retirement: the Political Push of Aging
Conventional economic wisdom suggests because of the aging process, social security systems will have to be retrenched. In particular, retirement age will have to be largely increased. Yet, is this policy measure feasible in OECD countries? Since the answer belongs mainly to the realm of politics, I evaluate the political feasibility of postponing retirement under aging in France, Italy, the UK, and the US. Simulations for the year 2050 steady state demographic, economic and political scenario suggest that retirement age will be postponed in all countries, while the social security contribution rate will rise in all countries, but Italy. The political support for increasing the retirement age stems mainly from the negative income effect induced by aging, which reduces the profitability of the existing social security system, and thus the individuals net social security wealth.
|Date of creation:||2006|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.igier.unibocconi.it/
|Order Information:|| Web: http://www.igier.unibocconi.it/en/papers/index.htm Email: |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- CREMER, Helmuth & PESTIEAU, Pierre, .
"Reforming our pension system: is it a demographic, financial or political problem?,"
CORE Discussion Papers RP
-1468, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Cremer, Helmuth & Pestieau, Pierre, 2000. "Reforming our pension system: Is it a demographic, financial or political problem?," European Economic Review, Elsevier, vol. 44(4-6), pages 974-983, May.
- Conde-Ruiz, J.I. & Galasso, V., 2000.
Economics Working Papers
eco2000/24, European University Institute.
- Sveinbjörn Blöndal & Stefano Scarpetta, 1999. "The Retirement Decision in OECD Countries," OECD Economics Department Working Papers 202, OECD Publishing.
- Helmuth Cremer & Jean-Marie Lozachmeur & Pierre Pestieau, 2002.
"Social Security, Retirement Age and Optimal Income Taxation,"
CESifo Working Paper Series
693, CESifo Group Munich.
- Cremer, Helmuth & Lozachmeur, Jean-Marie & Pestieau, Pierre, 2004. "Social security, retirement age and optimal income taxation," Journal of Public Economics, Elsevier, vol. 88(11), pages 2259-2281, September.
- CREMER, Helmuth & LOZACHMEUR, Jean-Marie & PESTIEAU, Pierre, . "Social security, retirement age and optimal income taxation," CORE Discussion Papers RP -1722, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- J. Ignacio Conde-Ruiz & Vincenzo Galasso, .
"The Macroeconomics of Early Retirement,"
- J. Ignacio Conde-Ruiz & Vincenzo Galasso, . "The Macroeconomic of Early Retirement," Working Papers 194, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Conde-Ruiz, José Ignacio & Galasso, Vincenzo, 2003. "The Macroeconomics of Early Retirement," CEPR Discussion Papers 3896, C.E.P.R. Discussion Papers.
- CASAMATTA, Georges & CREMER, Helmuth & PESTIEAU, Pierre, .
"Voting on pensions with endogenous retirement age,"
CORE Discussion Papers RP
-1754, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Tito Boeri & Axel Boersch-Supan & Guido Tabellini, 2002. "Pension Reforms and the Opinions of European Citizens," American Economic Review, American Economic Association, vol. 92(2), pages 396-401, May.
- J. Ignacio Conde-Ruiz & Vincenzo Galasso & Paola Profeta, 2005.
"Early Retirement and Social Security: A Long Term Perspective,"
CESifo Working Paper Series
1571, CESifo Group Munich.
- J. Ignacio Conde-Ruiz & Vincenzo Galasso & Paola Profeta, 2006. "Early Retirement and Social Security: A Long Term Perspective," CSEF Working Papers 165, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Jonathan Gruber & David A. Wise, 1999. "Social Security and Retirement around the World," NBER Books, National Bureau of Economic Research, Inc, number grub99-1, November.
- Galasso, Vincenzo & Profeta, Paola, 2007. "How does ageing affect the welfare state?," European Journal of Political Economy, Elsevier, vol. 23(2), pages 554-563, June.
- Vincenzo Galasso, 2008.
"The Political Future of Social Security in Aging Societies,"
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 026257246x, June.
- Vincenzo Galasso, 2006. "The Political Future of Social Security in Aging Societies," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262072734, June.
- Francisco M. Lagos & Juan Antonio Lacomba, 2001. "Election On Retirement Age," Working Papers. Serie AD 2001-09, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Cremer, Helmuth & Pestieau, Pierre, 2002.
"The Double Dividend of Postponing Retirement,"
IDEI Working Papers
144, Institut d'Économie Industrielle (IDEI), Toulouse, revised 2003.
When requesting a correction, please mention this item's handle: RePEc:igi:igierp:315. 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: ()
If references are entirely missing, you can add them using this form.