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Incentives to retire later - a solution to the social security crisis?
Note that the labor costs of the firm include a share of social security contributions.
Therefore, as much as 30 % of this population group was out of the social security system.
We present two versions of this result, considering two different types of social security schemes.
We show that any equilibrium of this type can be supported by a nonmonetary equilibrium with a saving-based social security system, and vice versa.
The general equilibrium effects of social security as well as its distortionary effects are ignored.
After retirement, they receive social security benefits in the benchmark economy.
This concern has encouraged calls to delay retirement so as to prevent the depletion of social security reserves.
These problems suggest that a redistributive social security system has to be centralised, and this is the standard conclusion in the public economics literature.
Reducing social security benefits was an important policy instrument.
A strongly watered down version of the social security reform was passed in late 1998.
Often this mechanism is needed for survival, a kind of built-in insurance to provide social security and care for the dependent and sick.
As a consequence of this trend towards early retirement, the financial sustainability of social security and earlyretirement schemes is at stake.
She already had four children aged under 11 and lived on social security.
It is a corollary of this slow growth and high unemployment that government social security spending and government borrowing would also be high.
