Minimum retirement age as a threshold to optional economic inactivity

Relatively low retirement age is among key public finance problems in developed countries. Attempts to increase it are usually ineffective. Contrary to that automatically adjusting universal public pension schemes (e.g. Poland, Sweden) opens new possibilities to solve the problem. Being based on individual accounts stimulates individual rationality of participants. This enables giving up the re­tirement age as a fiscal policy tool and to exchange it by the minimum retirement age. Chronological age ceases to institutionally matter in the labour market. The minimum retirement is needed as a social policy tool.

Bibliografia/References

Alesina, A., Perotti, R. (1997). The Welfare State and Competitiveness, American Economic Review, 87(5), 921–939.

Buchholtz, S., Góra, M. (2023). Wielorakie konteksty starzenia, Studia z Polityku Publicznej, 10(4), 25–41. DOI 10.33119/KSzPP/2023.4.2

Butrica, B. A., Johnson, R. W., Smith, K. E., & Steuerle, C. E. (2006). The implicit tax on work at older ages, National Tax Journal, 59(2), 211–234.

Chybalski, F. (2018). Wiek emerytalny z perspektywy ekonomicznej. Studium teoretyczno-empiryczne. C.H.Beck.

Cigno, A. (2008). Is there a social security tax wedge?, Labour Economics, 15(1), 68–77.

Davis, K. (1945). The World Demographic Transition. The ANNALS of the American Academy of Political and Social Science, 237(1), 1–11.

Eurostat (2023). Population projections in the EU.

Góra, M. (2013). Political economy of pension reforms: selected general issues and the Polish pension reform case. IZA Journal of Labor and Development, 2:2.

Góra, M., Rutecka, J. (2013). Elastyczny system emerytalny a obecne i przyszłe potrzeby jego uczestników. Ekonomista, 6, s. 735–753.

Góra, M., Palmer, E. (2020). NDC: The Generic Universal Public Pension Scheme. W: R. Holzmann, E. Palmer, R. Palacios, S. Sacchi (Eds), Progress and Challenges of Nonfinancial Defined Pension Schemes. Washington: World Bank.

Lee, R. (2003). The Demographic Transition: Three Centuries of Fundamental Change. The Journal of Economic Perspectives, 17(4), 167–190.

OECD (2024). Pensions at a Glance Asia/Pacific 2024. Paris: OECD Publishing.

Roser, Max (2023). Demographic transition: Why is rapid population growth a temporary phenomenon? Published online at OurWorldinData. org. Retrieved from: ‘https://ourworldindata.org/demographic-transition’ [Online Resource]

van de Kaa, DJ. (1994). The second demographic transition revisited: theories and expectations. NIDI/CBGS PUBLICATION. 1994, 81–126.

Wang, Z., & Rettenmaier, A. J. (2008). Deficits, Explicit Debt, Implicit Debt, and Interest Rates: Some Empirical Evidence. Southern Eco­nomic Journal, 75(1), 208–222.