Retirement doesn’t have to be a drastic cut from a full-time job to no job at all. You may still want to work, just not as much — especially if you aren’t financially ready to retire. The gradual reduction of hours known as “phased retirement” could be the answer, and it can be achieved either through an official policy at your employer or in a more informal fashion. In fact, 45% of U.S. workers envision reducing their work hours in a phased...
By Rong Zhu This paper examines the empirical link between retirement and the supply of volunteer labor, using panel data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey. To identify the causal impact, we exploit a major reform of the Australian Age Pension which has significantly changed the retirement incentives of older people. We find positive and significant effects of retirement status on the voluntary work provision of older men and women. Longer time spent in retirement...
The Office for National Statistics (ONS) has warned that the exit of workers aged between 50 and 65 from the workforce could negatively impact both individuals’ finances and the wider economy. The organisation’s Living longer: impact of working from home on older workers study estimated that if the employment rate of people in the age group matched that of those aged 35 to 49 years, it would add more than 5 per cent to UK gross domestic product (GDP), equating...
The Economic Advisory Council to the Prime Minister has recommended increasing the retirement age saying life expectancy is expected to continue to increase due to better health infrastructure. In a report released last week, the Council said the retirement age needs to be raised in a phased manner as India is a young nation with a high working population, reported Hindustan Times citing the report. Read also Pakistan’s unsustainable public pension system The Council also warned, “A rise in the retirement age,...
By Esteban García-Miralles & Jonathan M. Leganza We study how social security influences the retirement behavior of couples. First, we exploit over two decades of full-population data and a discontinuity design to document sizable retirement spillovers to spouses when individuals reach pension eligibility age. Next, we explore underlying mechanisms. We find age differences within couples to be a fundamental determinant of joint retirement, which is driven by older spouses working longer. Accounting for these age differences reveals a strong gender...
By Kibs Boaz Muhanguzi Unsustainable defined-benefit public pension scheme, rising life expectancy, and high level of unemployment endanger the socioeconomic and political stability of Uganda’s economy. This research approaches the problem from labor supply point of view by: (i) analyzing the effect of the public service pension scheme on timing of retirement; (ii) investigating the required early retirement incentives that would increase employment in the public service; and (iii) determining the predictors of postretirement employment in the public service in...
The Morrison government wants retirees to draw down their superannuation balances before they die, and has asked super funds to develop a strategy to make it easier for members to take money out of their super in retirement. The Commonwealth Treasury released a position paper on Monday canvassing the need for superannuation trustees to develop strategies that would encourage people to draw down their full super balances in retirement. The strategy, which would be in place from July 1, 2022, comes...
Spain will pay workers to postpone retirement as part of a pensions reform strategy that analysts warn does not go far enough to cut a huge deficit in the system. With nearly 30 billion euros ($36 billion) of annual losses in 2020 and rising, Spain's social security budget is one of the biggest contributors to the country's ballooning public deficit. The European Commission has long demanded that Spain reform its pension system and has made it a condition for accessing European...
French President Emmanuel Macron has announced a series of economic measures, looking beyond the pandemic, although the much-anticipated pensions reform will be delayed until Covid is "under control". Obligatory vaccines and the extension of the health pass made the headlines following Macron’s live TV address on Monday evening, but the President also sketched out his vision for France’s post-Covid economy. Some of the measures he announced represent a return to the priorities he set at the beginning of his tenure, while...
By Yuanyuan Deng, Hanming Fang, Katja Hanewald, Shang Wu We develop and calibrate a life-cycle model of labor supply and consumption to quantify the implications of alternative pension reforms on labor supply, individual welfare, and government budget for China’s basic old-age insurance program. We focus on urban males and distinguish low-skilled and high-skilled individuals, who differ in their preferences, health and labor income dynamics, and medical expense processes. We use the calibrated model to evaluate three potential pension reforms: (i)...
