Retirement Ages by Socio-Economic Class

Details

Ressource 1Request a copy Sous embargo indéterminé.
State: Public
Version: author
License: CC BY 4.0
Serval ID
serval:BIB_90609CD50E82
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
Retirement Ages by Socio-Economic Class
Journal
Risks
Author(s)
Arnold Séverine, Jijiie Anca
ISSN
2227-9091
Publication state
Published
Issued date
04/10/2020
Volume
8
Number
4
Pages
102
Language
english
Abstract
We are interested in defining the optimal retirement age by socio-economic class, given a Defined Benefit and a Notional Defined Contribution scheme. We firstly implement a utilitarian
framework. Depending on the risk aversion coefficients and individual time preference factors, the results differ significantly. Since this approach is individualistic, with no consensus in the existing literature on what values these parameters should take, it is not suitable to be used by policy makers. Therefore, we provide an alternative based on two accounts. We look for the retirement age allowing the accumulated value, at the last age with survivors, of the pensions received under each system, held in one account, to be close in value to the accumulated amount should the actuarially fair pension be paid, representing the second account. Our approach results in setting a lower retirement age for lower socio-economic classes and a higher retirement age for wealthier individuals.
Keywords
class-specific retirement age, pay-as-you-go, public pensions, fairness, utility functions, mortality by socio-economic class
Open Access
Yes
Create date
05/10/2020 6:58
Last modification date
16/12/2021 6:32
Usage data