The primary policy response to population aging in advanced economies has been to raise the mandatory retirement age. However, these policies have reignited calls for differentiated retirement ages that take into account variations in work intensity. This paper utilises microdata to examine the relevance and feasibility of this concept in Europe. It first quantifies career arduousness using SHARE wave 7 retrospective ISCO4-digit data on careers in combination with US O*NET working conditions data. Then, using SHARE follow-up data collecting (bad)health and death information about wave 7 respondents, it estimates (healthy) life expectancy by career arduousness decile, combining econometrics and life table methods. Findings reveal a life expectancy gap between the least and most arduous careers of 4to 4.2 years. Healthy life expectancy differences are slightly larger, ranging from 6.9 to 9.1 years. Also, women’s healthy life expectancy seems to be somewhat more impacted by arduousness.

Using three waves (2011–15) of CHARLS data, we analyze the short-term effects of widowhood on cognitive function among older Chinese. Fixed-effect models show that widowhood has significant adverse effects on cognition for rural elders but not for urban ones. Furthermore, compared to rural men, rural women exhibit greater declines in cognition, especially in fluid cognition. We explore the possible mechanism from the neighborhood perspective. The results show that community sports and entertainment facilities and public services can effectively mitigate the negative impact of widowhood on cognitive function for rural widows. Sports and entertainment facilities can mainly enhance word recall ability, especially delayed word recall. Public services such as elderly health centers focusing on the healthcare function for the elderly can also improve the word recall ability of rural widows. On the other hand, family-based elderly care centers mainly increase the cognition ability of mental intactness.

We study the 2017 pension reform in Finland, raising the statutory retirement age of the studied cohorts from 63 to 63 years and 6 months. Using monthly-based register data and a differences-in-differences approach, we estimate the reform’s impact on retirement, employment, unemployment, disability, sickness, and inactivity. Results indicate a significant 19-percentage-point increase in employment between the old and new retirement ages, alongside notable rises in unemployment, inactivity, and disability. Largely – but not entirely – this stems from the persistence of the previous labor market state. Gender differences are not large, but the effects vary considerably across education, income, employment sector, and self-employment status.

Some Americans prepare for unanticipated adverse economic events, plan for the future, and keep their debt at manageable levels, but others do not. Using four waves of the Understanding America Study during the pandemic period, we compare middle-aged and older Black, Hispanic, and White Americans’ financial resilience from 2020 to 2024. After uncovering significant initial differences in their financial preparedness at the outset of the pandemic, we confirm that greater financial resilience enhanced peoples’ chances of realizing better economic outcomes when confronting adverse economic shocks. The 2024 wave shows systematic differences in financial resilience across the demographic groups and indicates how greater resilience affects financial satisfaction.

Household survey estimates of retirement income suffer from substantial underreporting which biases downward measures of elderly financial well-being. Using data from both the 2016 Current Population Survey Annual Social and Economic Supplement (CPS ASEC) and the Health and Retirement Study (HRS), matched with administrative records, we examine to what extent underreporting of retirement income affects key statistics: elderly reliance on social security benefits and poverty. We find that retirement income is underreported in both the CPS ASEC and the HRS. Consequently, the relative importance of social security income remains overstated – 53 percent of elderly beneficiaries in the CPS ASEC and 49 percent in the HRS rely on social security for the majority of their incomes compared to 42 percent in the administrative data. The elderly poverty rate is also overstated – 8.8 percent in the CPS ASEC and 7.4 percent in the HRS compared to 6.4 percent in the administrative data.

Declining labor force participation of older men throughout the 20th century and recent increases in participation have generated substantial interest in understanding the effect of public pensions on retirement. The National Bureau of Economic Research's International Social Security (ISS) Project, a long-term collaboration among researchers in a dozen developed countries, has explored this and related questions. The project employs a harmonized approach to conduct within-country analyses that are combined for meaningful cross-country comparisons. The key lesson is that the choices of policy makers affect the incentive to work at older ages and these incentives have important effects on retirement behavior.

Many Organization for Economic Co-operation and Development countries invest heavily in labor-market programs to prolong careers. Although active labor-market programs have frequently been evaluated, less is known about passive programs supporting unemployed seniors financially. We focus on the latter by investigating the hiring opportunities of candidates who partake in a regime that ensures dismissed seniors a company supplement alongside regular unemployment benefits. Therefore, we conduct a scenario experiment in which genuine recruiters evaluate fictitious candidates who have spent varying durations unemployed in regimes with and without the company supplement. Because recruiters evaluate candidates' hireability and productivity perceptions, we can identify underlying mechanisms. Overall, we find no evidence of employer-side stigma hindering the re-employment of seniors unemployed in the program. Conversely, longer-term unemployed even benefit from this regime because it mitigates regular stigmatization of long-term unemployment, especially for men. Specifically, recruiters judge them more mildly – particularly regarding flexibility – when they receive the supplement and still apply.

As a result of unfavorable demographic processes, the pension systems in the Central and Eastern European (CEE) EU countries face significant challenges, which has made the implementation of reforms inevitable in the last decade. Relying on economic theory, this paper analyses the effects of the Hungarian pension reforms in comparison with those of other CEE countries, and discusses the consequences from the point of view of social policy and the sustainability of the pension schemes. We explore the reasons why the reforms in Hungary ultimately did not improve sustainability but rather contributed to dismantling the social care system. Therefore, the Hungarian case provides useful lessons for other countries, and at the same time underlines the importance of automatic adjustment mechanisms. The study pays particular attention to the theoretical analysis of pension indexation because its accurate quantitative effects are far from being sufficiently clarified in the literature, although it is vital for a thoughtful evaluation of pension reforms.

Twenty years ago, the adjustment to monthly Social Security benefits for early or delayed claiming was, on average, roughly actuarially fair, although some subsets of individuals could gain from delay. Since then, delaying claiming has become much more attractive thanks to three factors: a more generous delayed retirement credit, improvements in mortality, and historically low real interest rates. In this article, I examine how these three factors influence optimal claiming behavior. I also discuss empirical patterns of claiming across individuals and over time, as well as explanations for these patterns. I argue that although many people appear to claim suboptimally early, this behavior may be changing as information spreads about the importance of the claiming decision. Finally, I discuss policy toward claiming and the impact that an increase in strategic claiming could have on Social Security's finances.

As the heterogeneity in life expectancy by socioeconomic status increases, many pension systems imply a wealth transfer from short- to long-lived individuals. Various pension reforms aim to reduce inequalities that are caused by ex-ante differences in life expectancy. However, these pension reforms may induce redistribution effects. We introduce a dynamic general equilibrium-overlapping generations model with heterogeneous individuals that differ in their education, labor supply, lifetime income, and life expectancy. Within this framework we study six different pension reforms that foster the sustainability of the pension system and aim to account for heterogeneous life expectancy. Our results highlight that pension reforms have to be evaluated at various dimensions. Reforms that may increase the sustainability of the pension system are not necessarily conducive to reduce the redistributive wealth transfers from short- to long-lived individuals. Our paper emphasizes the need for studying pension reforms in models with behavioral feedback and heterogeneous socioeconomic groups.

This paper presents an empirical investigation of the hypothesis that exposure to the restrictive fertility policies of the Chinese “Later, Longer, Fewer” campaign in the 1970s contributes to the dynamics and patterns of elderly suicides in China in the period 2004–2017. We apply an identification strategy that exploits variation in exposure to this policy across birth cohorts that is based on the different timing of the implementation of the fertility policies across Chinese provinces. The results show that cohorts with a greater exposure to the restrictive fertility policy in the 1970s exhibit higher suicide rates during old ages.

The COVID-19 pandemic triggered a large and immediate drop in employment among U.S. workers, along with major expansions of unemployment insurance (UI) and work from home. We use Current Population Survey and Social Security application data to study employment among older adults and their participation in disability and retirement insurance programs through the second year of the pandemic. We find ongoing improvements in employment outcomes among older workers in the labor force, along with sustained higher levels in the share no longer in the labor force during this period. Applications for Social Security disability benefits remain depressed, particularly for Supplemental Security Income. In models accounting for the expiration of expanded UI, we find some evidence that the loss of these additional financial supports resulted in an increase in disability claiming. Social Security retirement benefit claiming is approximately 3% higher during the second year of the pandemic.

This paper examines inter-industry patterns of the employment of older workers over the last 20 years to understand where employment opportunities have grown the most. The underlying premise is that firms strategically align their age mix depending on production function and labor cost parameters. The industries that had the largest increases in the percentage of older workers were those that had the broadest pension coverage and those that made the greatest use of high-tech capital. There also is evidence in 2001–07 that the percentage of older workers increased more in the industries most exposed to increased Chinese imports.

Disability-free life expectancy had been rising continuously in the United States until 2010, suggesting working longer as a solution for those financially unprepared for retirement. However, recent developments suggest improvements in working life expectancy have stalled, especially for minorities and those with less education. This paper uses data from the National Vital Statistics System, the American Community Survey, and the National Health Interview Survey to assess how recent trends, up to 2018, in institutionalization, physical impediments to work, and mortality have affected working life expectancy for men and women age 50, by race and education.

The decision in the early 1990s to cut back on the building of public housing intensified the already dire shortage of affordable housing and increased the marginalisation of the sector. To be eligible for public housing, new entrants usually have to be in ‘greatest need’. This study argues that the shift in the eligibility criteria for accessing public housing means that public housing estates increasingly reflect what Loïc Wacquant calls ‘advanced urban marginality’. The article assesses whether the features of advanced urban marginality that are identified by Wacquant capture and can be usefully used to analyse the shifts and contemporary characteristics of public housing. The article draws on existing data and in-depth interviews with 33 older (aged more than 65 years) public housing tenants in Sydney, Australia, to analyse the residualisation of public housing using the features of advanced marginality identified by Wacquant – ‘wage labour as a vector of social instability and life insecurity’, ‘functional disconnection from macroeconomic trends’, ‘territorial fixation and stigmatisation’, ‘spatial alienation and the dissolution of place’, ‘loss of hinterland’ and ‘social fragmentation and symbolic splintering’. The study concludes that although Wacquant’s analysis is useful and captures much of what has occurred in public housing estates in Sydney, in many instances, public housing remains a source of pride for its tenants and provides them with the basis for a good life.

Extensive research by demographers and economists has shown that longevity differs across socio-economic status (SES), with low-educated or low-income people living, on average, shorter lives than their better-endowed and wealthier peers. Therefore, a pension system with a unique retirement age is a priori problematic. The usual policy recommendation to address this problem is to differentiate the retirement age by SES. This paper explores the relative merits of partial de-annuitization of public pensions as a way of addressing the (imperfectly assessed) inequality of longevity.

Balancing caregiving duties and employment can be both financially and emotionally burdensome, especially when care is provided to a spouse at home. Caregiving subsidies can play a role in helping caregivers to cope with such duties. This paper demonstrates how providing financial respite for caregivers can influence individuals' decisions to retire early. We investigate the impact of a reform that extended long-term care (LTC) benefits (in the form of subsidies and supports) on the intention of a caregiving spouse to retire early in Spain. We subsequently examine the effect of austerity spending cuts reducing such publicly funded benefits, and we compare the estimates to the effects of an early retirement reform among private sector workers around the same time. Our preferred estimates suggest evidence of a 10pp reduction in early retirement intentions after the extension of LTC benefits even though the effect is heterogeneous by type of benefit. Consistently, austerity spending cuts in benefits are found to weaken retirement intentions. Even more importantly, our estimates suggest that cuts in caregiving subsidies exert a much stronger effect on early retirement intentions than actual early retirement reforms.

This paper uses Socio-Economic Surveys covering the period from 2013 to 2019 and the 2015 Time Use Survey to investigate the extent to which household consumption changes at retirement in Thailand. A fuzzy regression discontinuity design is applied to evaluate the retirement effect on total household expenditure and expenditures on four major categories: food-at-home, work-related items, non-durable entertainment, and others. The results reveal that retirement decreases household expenditure by 11%. Further investigations show that the dramatic declines in expenditures on work-related and non-durable entertainment contribute significantly to the spending drop at retirement. The magnitudes of the declines are more pronounced for low-income and low-wealth households. The results also indicate that the retirees spend more leisure time on home production activities after retirement. Once accounting for this effect, it finds that the drop in total household expenditure decreases to 6%. These results suggest that the sizable consumption expenditure drop at retirement is due to substituting away from market purchased goods toward home-produced goods.

The paper explains long-term changes in birth, death rates, and in attitude to personal consumption by evolution of preferences by means of cultural transmission. When communities are culturally isolated, they are focused on population growth, which results in large fertility and welfare transfers to children, limited adult consumption, and lack of old-age support. With increasing cultural contact across communities, successful cultural traits induce their hosts to increase their social visibility by limiting fertility and increasing longevity via higher individual consumption. Empirical analysis confirms that social visibility, as measured by the number of language versions of Wikipedia biographical pages, is associated with fewer children and longer lifespan. The presence of notable individuals precedes reduced aggregate birth rates.

We field a large online survey to study preferences and hypothetical product choices for phased withdrawal accounts and compare their demand to the demand of annuities. We find that most individuals prefer phased withdrawal accounts with dynamic withdrawal rates and equity-based asset allocation. Additionally, when offered the opportunity to exchange the phased withdrawal account with an annuity, most individuals decline to annuitize. Our results suggest that policymakers should consider offering combined solutions of phased withdrawals and annuities. Retirees who are averse to full annuitization could preserve some of their accumulated wealth while also acquiring protection against longevity risk.