23 Oct 2008

Flexible Pension Systems

Postponed Retirement and Distributional Fairness

Hannu Piekkola

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European Network of Economic Policy Research Institutes (ENEPRI) Research Report No. 61  / 36 pages

This paper studies how both pension systems and well-being at work can be improved to postpone retirement in European households. Option values for retirement are constructed from a pool of four countries: Finland, Belgium, Germany and Spain, all relying on public-sector mandated pensions. The pooled estimation strategy diminishes the caveats of using an existing institutional setting to examine the incentives of introducing a new pension system. Pension reforms have to implement higher pension rights accruals than what has so far been introduced in pension reforms during the 2000s.

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