Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/242137 
Year of Publication: 
2019
Citation: 
[Journal:] DANUBE: Law, Economics and Social Issues Review [ISSN:] 1804-8285 [Volume:] 10 [Issue:] 1 [Publisher:] De Gruyter [Place:] Warsaw [Year:] 2019 [Pages:] 1-22
Publisher: 
De Gruyter, Warsaw
Abstract: 
This paper takes a closer look at the existing early retirement schemes in Austria and analyses whether early retirement imposes a financial burden on the pension system (actuarial neutrality). Additionally, we compute incentive-neutral deductions for early retirement. These deductions reflect the view of the individual, who faces option of retiring earlier or working another year. Incentive neutral deductions would imply that an individual is indifferent between both. Our results highlight substantial differences between both measures. While the current deduction rate of 5.1% in the Austrian age corridor is, on average, close to actuarial neutrality, it is lower than the incentive-neutral deductions. This indicates that there are financial incentives for early retirement, which may arise due to the Austrian tax system. Additionally, we show that both actuarial and incentive neutrality differ substantially across socio-economic characteristics, such as gender, wages and (early) retirement age.
Subjects: 
Pension System
Actuarial Neutrality
Incentive Neutrality
Deductions
Early Retirement
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

Files in This Item:
File
Size
315.37 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.