Tyrowicz, Joanna Makarski, Krzysztof Bielecki, Marcin
[Journal:] IZA Journal of Labor Policy [ISSN:] 2193-9004 [Volume:] 5 [Year:] 2016 [Issue:] 8 [Pages:] 1-36
We analyze the effects of increasing the retirement age in two economies with overlapping generations and within cohort ex ante heterogeneity. The first economy has a defined benefit system, and the second economy is in transition from a defined benefit to a defined contribution. We find that if increase in the retirement age is phased in a way that allows agents to adjust, welfare is not reduced and welfare effects have a similar magnitude and between-cohort distribution in both types of the pension systems.
Retirement age DB DC Pension system reform Longevity