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Retirement Expectations in the Aftermath of a Pension Reform

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  • Noemi Oggero

    (University of Turin
    CeRP-Collegio Carlo Alberto)

Abstract

In this paper we investigate the effects of a pension reform on workers’ retirement expectations. To assess whether individuals revise their expectations in the direction suggested by changes in legislation, we exploit the 2011 Italian pension reform. Using 2010 and 2012 data for a representative sample of the Italian population, we find that the reform worsened workers’ expectations on replacement rate. Yet, this is not consistent with the tightening of age requirements in a defined contribution context. One explanation is that workers may not be fully aware of the mechanism of a defined contribution pension system.

Suggested Citation

  • Noemi Oggero, 2023. "Retirement Expectations in the Aftermath of a Pension Reform," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(1), pages 353-367, March.
    • Handle: RePEc:spr:italej:v:9:y:2023:i:1:d:10.1007_s40797-021-00179-8
    DOI: 10.1007/s40797-021-00179-8
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    References listed on IDEAS

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    1. Gopi Shah Goda & Colleen Flaherty Manchester & Aaron Sojourner, 2012. "What Will My Account Really Be Worth? An Experiment on Exponential Growth Bias and Retirement Saving," NBER Working Papers 17927, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Billari, Francesco C. & Favero, Carlo A. & Saita, Francesco, 2023. "Online financial and demographic education for workers: Experimental evidence from an Italian Pension Fund," Journal of Banking & Finance, Elsevier, vol. 151(C).

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    More about this item

    Keywords

    Expectations; Pension reforms; Retirement; Information;
    All these keywords.

    JEL classification:

    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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