We analyze the effects of increasing the retirement age in two economies with overlapping generations and within cohort ex ante heterogeneity. The first economy has a defined benefit system and the second economy is in transition from a defined benefit to a defined contribution. We find that if increase in the retirement age is phased in a way that allows agents to adjust, welfare is not reduced and welfare effects have a similar magnitude and between cohort distribution in both types of the pension systems.
Published version
2016
@article{tyrowicz2016reforming,
title={Reforming retirement age in DB and DC pension systems in an aging OLG economy with heterogenous agents},
author={Tyrowicz, Joanna and Makarski, Krzysztof and Bielecki, Marcin},
journal={IZA Journal of Labor Policy},
volume={5},
number={1},
pages={1--36},
year={2016},
publisher={Springer}
}