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Why Forcing People to Save for Retirement may Backfire Author info | Abstract | Publisher info | Download info | Related research | Statistics Monika Bütler ()
Olivia Huguenin ()
Federica Teppa ()
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If individuals are unable or unwilling to borrow, a higher than desired second pillar pension capital may induce people to retire earlier than they would have in the absence of such a scheme. Individuals thus leave the workforce as soon as the retirement income is deemed sufficient and the pension plan avails withdrawal of benefits. We provide evidence using individual data from a selection of Swiss pension funds, allowing us to perfectly control for pension scheme details. Our findings suggest that affordability is a key determinant in the retirement decisions. The higher the accumulated pension capital, the earlier individuals tend to leave the workforce.
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number
CESifo Working Paper No. 1458.
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Date of creation: 2005Date of revision:
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Keywords: occupational pension ; retirement decision ; duration models ; Other versions of this item:
Find related papers by JEL classification: D91 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Consumer Choice; Life Cycle Models and Saving H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
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