The Standard Deviation of Life-Length, Retirement Incentives, and Optimal Pension Design

摘要: In this paper, we consider how the retirement age as well a tax financed pension system ought to respond change in standard deviation of length life. first best framework, where benevolent government exercises perfect control over individuals’ labor supply and retirement-decisions, results show that decrease life-length leads an increase optimal vice versa, if preferences for “the number years spent retirement” are characterized by constant or decreasing absolute risk aversion. A similar result follows second setting, raises revenue via proportional (or fee) finance lump-sum benefit per year retirement. We two versions model, one with mandatory decided upon other is private decision-variable.