AGING, RETIREMENT, AND PAY-AS-YOU-GO PENSIONS.

Authors :: Cipriani, Giam Pietro
Source :: Macroeconomic Dynamics; Jul2018, Vol. 22 Issue 5, p1173-1183, 11p
Publication Year :: 2018
Abstract: In this paper, we consider the effects of population aging on a pay-as-you-go financed defined contributions pension scheme. We show that when retirement decisions are endogenous, aging increases the retirement age and the steady-state level of capital. The effect on pension payouts is in general ambiguous, except for the solution of full retirement, when this effect is unambiguously negative. [ABSTRACT FROM AUTHOR]