Retirement, Pension Reform, and Lifecycle Pension Wealth: An International Comparison
Sang-Hyop Lee, University of Hawaii at Manoa
This study considers the effect of the later retirement and an increase in pensionable age on old age support system by using a larger study of the economic life-cycle, the National Transfer Accounts (NTA). The NTA is a new system of accounts that is consistent with National Income and Product Accounts but provides much-needed age data. The results also make use of a similar simulation model to assess the implications of population change for wealth and income. Our results show that increasing pensionable age or delaying retirement has a substantial impact on labor income and pension wealth to elderly. An increase in pensionable age raises the asset to labor income ratio, but delaying retirement lowers it. The effects vary a lot depending on our study countries, but the combined effect generally raises the ratio. The effect will be greater if delaying retirement crowds out some of the familial transfers.
Presented in Session 78: Late Life Work, Retirement and Income Security