Longevity , life-cycle behavior and pension reform

  title={Longevity , life-cycle behavior and pension reform},
  author={P. G. di Haan},
How can public pension systems be reformed to ensure fiscal stability in the face of increasing life expectancy? To address this pressing open question in public finance, we use micro data to estimate a structural life-cycle model of individuals’ employment, retirement and consumption decisions. Our modeling approach allows life expectancy and the nature of the public pension system to influence the decisions of forward-looking individuals planning for retirement. We calculate that, in the case… CONTINUE READING