Are we doing enough to discourage early retirement?

Goulão, Catarina and Gouveia, Miguel (2011) Are we doing enough to discourage early retirement? TSE Working Paper, n. 11-220

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Official URL: http://tse-fr.eu/pub/24037

Abstract

Increasing the effective retirement age contributes to the sustainability of pension systems.
However, oftentimes policies aiming at rising employment rates of older workers fall short in
delaying retirement. This seems to be the case with retirement age flexibility reforms in Portugal.
We analyze the recent Portuguese history of incentives to retire. For 1990-2006 we find that
individuals faced very high implicit taxes on working with the result that half the workers had already left the labour force before age 65. We then look at the Social Security reforms in 2007 and find that the incentives to continue working became even smaller than they already were.
We conclude that increasing the labour supply of older workers in a system with flexible
retirement age needs policies with more aggressive use of penalties and bonuses than what
decision makers were willing to accept.

Item Type: Monograph (Working Paper)
Language: English
Date: January 2011
Uncontrolled Keywords: Early retirement, Pensions, Social Security
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 18 Jan 2012 06:03
Last Modified: 07 Mar 2018 13:22
OAI ID: oai:tse-fr.eu:24037
URI: http://publications.ut-capitole.fr/id/eprint/3562

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