Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/264793 
Authors: 
Year of Publication: 
2015
Series/Report no.: 
Working Paper No. 201
Publisher: 
Oesterreichische Nationalbank (OeNB), Vienna
Abstract: 
In this paper I study the impact of increasing longevity on pay-as-you-go pension systems. First, I show that increasing longevity increases their internal rate of return. The size of the effect di ers for di erent policy regimes. It is higher for the case where the retirement age is increased in order to keep the system in balance than for the case where the necessary adjustment is achieved by reducing pension bene ts. Second, I study optimally chosen retirement decisions and I show that the socially optimal policy involves a shorter working life than the private optimum. The social optimum can be implemented by the use of a PAYG system that combines an actuarial and a at pension.
Subjects: 
Pension System
Demographic Change
Increasing Life Expectancy
Re- tirement Decision
JEL: 
H55
J1
J18
D63
Document Type: 
Working Paper

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