Journal of Population Economics

, Volume 19, Issue 3, pp 507–519 | Cite as

Population aging and legal retirement age

Original Paper

Abstract

This paper analyzes the effects of population aging on the preferred legal retirement age. What is revealed is the crucial role that the indirect ‘macro’ effects resulting from a change in the legal retirement age play in the optimal decision. Two social security systems are studied. Under a defined contribution scheme, aging lowers the preferred legal retirement age. However, under a defined pension scheme, the retirement age is delayed. This result shows the relevance of correctly choosing the parameter affected by the dependency ratio in the design of the social security programme.

Keywords

Social security Aging Legal retirement age 

JEL

H55 J26 

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Copyright information

© Springer-Verlag 2005

Authors and Affiliations

  1. 1.Faculty of EconomicsUniversity of GranadaGranadaSpain

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