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Actuarial neutrality and financial incentives for early retirement in the Austrian pension system

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  • Christl, Michael
  • Kucsera, Dénes

Abstract

This paper studies actuarial neutrality in the Austrian pension system. It is often argued that actuarial neutrality constitutes an incentive for people to retire. We show that there are almost no financial incentives within the Austrian pension corridor when we use the traditional definition of actuarial neutrality. Taking taxation into account, our results suggest that financial incentives for early retirement stem mainly from the Austrian tax system and not from the pension system itself.

Suggested Citation

  • Christl, Michael & Kucsera, Dénes, 2016. "Actuarial neutrality and financial incentives for early retirement in the Austrian pension system," Working Papers 01, Agenda Austria.
    • Handle: RePEc:zbw:agawps:01
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    References listed on IDEAS

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    More about this item

    Keywords

    Actuarial neutrality; early retirement; pension system; Austria;
    All these keywords.

    JEL classification:

    • 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

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