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Introducing flexible retirement : a dynamic model

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Typically economists arguing for flexible (or variable) retirement age, but they rely on steady state analysis.  In this paper we consider the replacement of a mandatory retirement system with a flexible one in real time. We show that even if early retirement is duly punished, diminishing the effective retirement age by 1 year raises the first year’s and the total expenditures during transition by 8% and  70% of the original annual expenditure, respectively.

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2024

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