Pensions for an Aging Population
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NBER Working Paper No. 11877
Issued in December 2005
NBER Program(s): AG PE
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After presenting the Gruber-Wise analysis showing a strong effect on retirement of implicit taxes from pension rules, it is shown that there is no effect of these implicit taxes on unemployment. This supports the argument for avoiding high implicit taxes on continued work. Also discussed are methods for adjusting benefits and taxes for increases in life expectancy, with particular attention to increasing "the retirement age." Calculations are presented showing the decreases in benefits for an increase in the normal retirement age in the US and the years of service for a full benefit in France.
Published: Diamond, Peter. “Système de retraite et vieillissement de la population.” (“Pensions for an Aging Population.”) Revue Française d'Economie 20 (April 2006): 21-49.
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