TITLE

Restrict early retirement to make the pension reform a success

PUB. DATE
May 2006
SOURCE
OECD Economic Surveys: Finland;May2006, Vol. 2006 Issue 5, p63
SOURCE TYPE
Country Report
DOC. TYPE
Country Report
ABSTRACT
A wide-ranging pension reform was introduced at the beginning of 2005. A central objective is to extend working lives by 2-3 years. However, success is likely to depend on further curtailment of early retirement pathways which will otherwise blunt the improved financial incentives to work longer in the reformed old-age pension system. The "unemployment pipeline" whereby the unemployed can effectively retire at age 57 should be abolished and activation measures for the older unemployed increased. There is also considerable scope to reduce the large share of the population on a disability pension, following experience of other OECD countries, particularly through better gate-keeping and greater emphasis on activation that involves early intervention combining both medical and vocational rehabilitation. Such an approach is also likely to improve the health and well-being of many of those directly concerned. Moreover, past experience suggests that early retirement pathways can amplify and perpetuate major adverse demand shocks, because the likelihood of returning to employment is low.
ACCESSION #
21352754

 

Related Articles

  • Hybrid plans used in cost cutting. Anand, Vineeta // Pensions & Investments;5/15/2000, Vol. 28 Issue 10, p20 

    Focuses on an increase in the number of large employers using hybrid pension plans in the United States. Opportunity to drop subsidized early retirement programs; Companies' redistribution of a portion of their savings into their employers' pension and retirement plans; Low unemployment rate in...

  • Time will tell.  // Crain's Cleveland Business;8/26/2002, Vol. 23 Issue 34, p8 

    Comments on the approval of the Retirement Incentive Program in Cuyahoga County, Ohio. Arguments regarding the importance of the incentive program; Reason for the increasing rate of unemployment; Need for balance in the budget by the local government.

  • County offers early retirement plan. Czurak, David // Grand Rapids Business Journal;7/26/2010, Vol. 28 Issue 30, p4 

    The article reports on the new voluntary retirement incentive program launched by the Kent County Pension Board in Michigan, which involves giving back 50 percent of the next negotiated wage increase, and raising the employee annual pension contribution from 6.5 percent to 7.5 percent.

  • MIND THE GAP: THE EFFECTIVENESS OF INCENTIVES TO BOOST RETIREMENT SAVING IN EUROPE. B�rsch-Supan, Axel // OECD Economic Studies;2004, Vol. 2004 Issue 2, p111 

    Considers the effectiveness of using incentives to increase retirement savings in Europe. Reasons for selecting preferential tax treatment to retirement savings; Retirement saving and the institutional setting in Europe; Substitution between pay-as-you-go pensions and private pensions;...

  • Will we see another 55/25.  // NYSUT United;Jan2011, Vol. 1 Issue 5, p41 

    The article presents questions and answers related to pensions including one on early retirement incentives for 2011, one concerning eligibility for Tier 4 membership in Teacher Retirement System (TRS), and one on U.S. states which do not tax pensions.

  • Unemployed – and Unwilling to Work? Brenke, Karl // Economic Bulletin;2002, Vol. 39 Issue 6, p187 

    It is frequently claimed that the unemployed are not sufficiently willing to work. The Socio-Economic Panel examined the accuracy of this assertion using its own survey data. In fact, most of those who are registered unemployed, about 80% are available for work, one-fifth do not want to take up...

  • REDUCTION IN THE LONG-TERM UNEMPLOYMENT OF THE ELDERLY: A SUCCESS STORY FROM FINLAND. Kyyrä, Tomi; Wilke, Ralf A. // Journal of the European Economic Association;Mar2007, Vol. 5 Issue 1, p154 

    In several European countries the elderly unemployed are allowed to collect unemployment benefits up to a certain age limit, after which they can retire via some early retirement scheme. In Finland the eligibility age of persons benefiting from this kind of scheme was raised from 53 to 55 in...

  • Labour market reforms to boost employment.  // OECD Economic Surveys: Belgium;Mar2007, Vol. 2007 Issue 3, p65 

    Employment growth has picked up since 2004, and so has labour supply, reflecting government policies to encourage participation. Nonetheless, unemployment is persistent and particularly high for certain groups, such as older and younger workers. Moreover, important geographical differences in...

  • Maintaining the reform drive to make labour market improvements more lasting.  // OECD Economic Surveys: Germany;Apr2008, Vol. 2008 Issue 7, p69 

    Labour market outcomes are improving rapidly in the current upswing, also reflecting previous reform efforts. To make those improvements more lasting, but also to widen the positive effects, further reform efforts should focus on: i) raising the number of hours worked per person employed; ii)...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics