Working Less for Longer: Unintended Effects of Longevity Adjustment of Retirement Age 

Working Less for Longer: Unintended Effects of Longevity Adjustment of Retirement Age | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Working Less for Longer: Unintended Effects of Longevity Adjustment of Retirement Age Svend E. Hougaard Jensen, Thorsteinn Sigurdur Sveinsson, Filipe Bonito Vieira This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-2864551/v1 This work is licensed under a CC BY 4.0 License Status: Published Journal Publication published 26 Sep, 2024 Read the published version in International Tax and Public Finance → Version 1 posted 7 You are reading this latest preprint version Abstract This paper utilises a model with overlapping generations ad modum Blanchard-Yaari and shows that by broadening the labour supply on the extensive margin through longevity adjustment of the statutory retirement age, labour supply is likely to decrease on the intensive margin. This backlash effect depends strongly on the specific design of the pension system: It is significantly higher under a pay-as-you-go scheme with fixed benefits compared to a pay-as-you-go scheme with fixed contributions and a fully funded scheme based on voluntary savings. The findings have implications for how to address the fiscal and macroeconomic challenges raised by an ageing population. JEL codes: E21, J21, J26, H55 Demographic change fiscal policy pension reform retirement Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Published Journal Publication published 26 Sep, 2024 Read the published version in International Tax and Public Finance → Version 1 posted Editorial decision: Major revision 19 Jul, 2023 Reviews received at journal 26 May, 2023 Reviewers agreed at journal 08 May, 2023 Reviewers invited by journal 06 May, 2023 Editor assigned by journal 02 May, 2023 Submission checks completed at journal 27 Apr, 2023 First submitted to journal 26 Apr, 2023 You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-2864551","acceptedTermsAndConditions":true,"allowDirectSubmit":false,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":195568949,"identity":"948927f9-16af-4b9d-8ff9-906d3f1edf91","order_by":0,"name":"Svend E. 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