Perceived Longevity and Early Retirement

Wolfe, John R.

doi:10.2307/1935922

Cited by 29 publications

(10 citation statements)

References 3 publications

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“…However, many empirical studies refute this assumption, particularly for men, indicating a higher mortality of early retirees in several countries [11][12][13][14][15]. Health-related selection effects in the labour market are commonly acknowledged to contribute to this result.…”

Section: Discussionmentioning

confidence: 99%

Early retirement and mortality in Germany

Kühntopf

Tivig

2012

Eur J Epidemiol

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Differences in mortality by retirement age have an important impact on the financing of pension insurance, yet no clear-cut results for Germany exist so far. We calculate mortality rates by retirement age from microdata on all German old-age pensioners and 1.84 million deceases. The life expectancies and survival probabilities at age 65 are estimated for population subgroups according to creditable periods because of disease and pension income. Early-retired men who reach the age of 65 years live significantly longer the later early retirement occurs; the life expectancy at age 65 ranges from 13 to 17.8 years. For each retirement age, mortality of men is higher the more periods of disease are credited in the pension insurance system. For a given length of credited periods of disease, mortality of early retirees decreases with the retirement age. 'Healthy worker selection effects' operating in the labour market may contribute to these results. The 'work longer, live longer'-result is found for each pension income quintile, which resolves the J-curve pattern found in the literature. The mortality of female old-age pensioners varies little with retirement age.

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Section: Discussionmentioning

confidence: 99%

Early retirement and mortality in Germany

Kühntopf

Tivig

2012

Eur J Epidemiol

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“…Our paper is closely related to the body of literature on claiming behavior and life expectancy in the US. Empirical analyses of mortality and pension claiming date back to Wolfe (1983), who finds that those who claim their social security pension at age 62 have higher mortality than those who claim at age 65. Coile et al (2002) show that it would be beneficial for many to delay claiming but that few actually do.…”

Section: Introductionmentioning

confidence: 99%

Life Expectancy and Claiming Behavior in a Flexible Pension System

Brinch

Fredriksen

Vestad

2018

Scandinavian J Economics

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Abstract:We study the relationship between early claiming of pensions and incentives in the highly flexible Norwegian public pension system, measuring incentives to claim based on an estimated model for expected longevity. Despite a strong correlation between incentives and claiming decisions, the additional costs to public budgets arising from this selection turn out to be modest. Based on analyses exploiting only variation in expected pensions generated by variation in parental longevities and only claiming of pensions not in conjunction with retirement, we conclude that part of the selection is active: Some individuals claim pensions early because they gain from doing so. Vi finner at personer som velger tidlig uttak av pensjon i stor grad er de som har mest å tjene på tidlig uttak, som følge av kort forventet levetid. Videre viser vi, ved å bruke foreldres levetid som instrumenter for egen forventet levealder, at deler av denne sammenhengen er kausal: en betydelig andel av de som velger tidlig uttak av pensjon ser ut til å gjøre dette fordi det resulterer i høyere forventede pensjonsutbetalinger. Til tross for en sterk negativ sammenheng mellom forventet levealder og tidlig uttak av pensjon finner vi at ekstrakostnadene for pensjonssystemet som følger av denne sammenhengen er heller beskjedne. Dermed bør kostnader som følge av individuelle tilpasninger til levealdersjustering av pensjoner ikke tillegges betydelig vekt i utformingen av offentlige pensjonssystemer.

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“…The first to model such a relation was Wolfe (1983). 1 There is also direct evidence that everybody can predict his own life expectancy, the expected value of the life span, quite well (Hamermesh 1985 andSmith et al 2001).…”

Section: Introductionmentioning

confidence: 99%

Designing benefit rules for flexible retirement: Welfare vs. redistribution

Eső¹,

Simonovits

Tóth³

2011

Acta Oeconomica

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With flexible (variable) retirement every individual determines his optimal retirement age, depending on a common benefit-retirement age schedule and his life expectancy. The government maximises the average expected lifetime utility minus a scalar multiple of the variance of the lifetime pension balances to achieve harmony between the maximisation of welfare and the minimisation of redistribution. Since the government cannot identify types by life expectancy, it must take the individual incentive compatibility constraints into account. Second-best schedules strongly reduce the variances of benefits and of retirement ages of the so-called actuarially fair system, thus achieving higher social welfare and lower redistribution.

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Perceived Longevity and Early Retirement

Cited by 29 publications

References 3 publications

Early retirement and mortality in Germany

Early retirement and mortality in Germany

Life Expectancy and Claiming Behavior in a Flexible Pension System

Designing benefit rules for flexible retirement: Welfare vs. redistribution

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