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Ho to Delay Labor Market Exit and Pension Claiming?

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  • Staubli, Stefan
  • Lalive, Rafael

Abstract

Understanding labor market exit and pension claiming is central to pension reform. We study a Swiss reform delaying access to a full retirement pension by two years, from 62 to 64 years, by reducing early pensions by 3.4 % initially, then by 6.8 %, per year of early claiming. We find that increasing the full retirement age (FRA) by one year delays labor market exit by 4 to 6 months, affecting women who leave the labor force at the FRA. Increasing the FRA by one year delays claiming of retirement benefits by 6 to 8 months. Doubling the early retirement penalty, from 3.4% to 6.8%, delays pension claiming by almost 4 months but has no effect on labor market exit. Raising the FRA lowers social security benefits and social security wealth, by about 3 %. Doubling the early retirement penalty neither affect benefits nor social security wealth. An FRA that acts as a default retirement age generates strong effects on work and pension decisions.

Suggested Citation

  • Staubli, Stefan & Lalive, Rafael, 2016. "Ho to Delay Labor Market Exit and Pension Claiming?," VfS Annual Conference 2016 (Augsburg): Demographic Change 145550, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc16:145550
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    Cited by:

    1. Mohamed Ali Ben Halima & Camille Ciriez & Malik Koubi & Ali Skalli, 2021. "Retarder l’âge d’ouverture des droits à la retraite provoque-t-il un déversement de l’assurance-retraite vers l’assurance-maladie ? L’effet de la réforme des retraites de 2010 sur l’absence-maladie," Working Papers hal-03507914, HAL.
    2. Mohamed Ali Ben Halima & Camille Ciriez & Malik Koubi & Ali Skalli, 2022. "Retarder l’âge d’ouverture des droits à la retraite provoque-t-il un déversement de l’assurance-retraite vers l’assurance-maladie ? L’effet de la réforme des retraites de 2010 sur l’absence-maladie," Working Papers hal-03509628, HAL.

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    More about this item

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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