Retirement consumption and pension design by Jonas Kolsrud, Camille Landais, Daniel Reck and Johannes Spinnewijn
Contributor(s): Kolsrud, Jonas
.
Material type: 
ArticleSubject(s): JUBILADOS | CONSUMO | PENSIONES DE JUBILACIÓN | IMPUESTOS | RENTA FAMILIAR
In:
The American Economic Review v. 114, n. 1, January 2024, p. 89-133Summary: This paper analyzes consumption to evaluate the distributional effects of pension reforms. Using Swedish administrative data, we show that on average, workers who retire earlier consume less while retired and experience larger drops in consumption around retirement. Interpreted via a theoretical model, these findings imply that reforms incentivizing later retirement incur a substantial consumption smoothing cost. Turning to other features of pension policy, we find that reforms that redistribute based on early-career labor supply would have opposite-signed redistributive effects, while differentiating on wealth may help to target pension benefits toward those who are vulnerable to larger drops in consumption around retirement.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 234/2024/1-2 (Browse shelf) | Available | OP 234/2024/1-2 |
Browsing IEF Shelves Close shelf browser
| No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | ||
| OP 234/2024/11-1 Sticky spending, sequestration, and government debt | OP 234/2024/11-2 The dynamic consequences of state building | OP 234/2024/11-3 Micro risks and (robust) pareto-improving policies | OP 234/2024/1-2 Retirement consumption and pension design | OP 234/2024/12 The American Economic Review | OP 234/2024/12-1 Decisions under risk are decisions under complexity | OP 234/2024/12-2 Loans for the "Little Fellow" |
Resumen.
Bibliografía.
This paper analyzes consumption to evaluate the distributional effects of pension reforms. Using Swedish administrative data, we show that on average, workers who retire earlier consume less while retired and experience larger drops in consumption around retirement. Interpreted via a theoretical model, these findings imply that reforms incentivizing later retirement incur a substantial consumption smoothing cost. Turning to other features of pension policy, we find that reforms that redistribute based on early-career labor supply would have opposite-signed redistributive effects, while differentiating on wealth may help to target pension benefits toward those who are vulnerable to larger drops in consumption around retirement.
There are no comments for this item.