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- W4378530005 abstract "This paper analyzes behavioral responses to a 2014 reform in the German public pension system that lowered the full retirement age (FRA) of individuals with a long contribution history by up to two years and framed the new FRA as reference age for retirement. Using administrative data from public pension insurance accounts, we first document a substantial bunching response at the FRA exceeding the control group’s bunching by 83%. Second, we show in a difference-in-difference setting that a 1.0 year decrease in the FRA leads to a reduction in the average pension claiming age by 0.3–0.4 years. Treated individuals neither have poorer health nor are more likely to be liquidity-constrained than individuals in the control group. Our results suggest that the strong responses to the reform are driven both by the new FRA serving as a reference point and by financial incentives. Estimated fiscal costs of the reform are at the upper end of the range of previous back-of-the-envelope calculations." @default.
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- W4378530005 date "2023-07-01" @default.
- W4378530005 modified "2023-10-01" @default.
- W4378530005 title "‘Earned, not given’? The effect of lowering the full retirement age on retirement decisions" @default.
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- W4378530005 doi "https://doi.org/10.1016/j.jpubeco.2023.104909" @default.
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