Today’s pay-as-you-go social security systems are put under pressure due to increasing life expectancy, the baby boomers generation entering retirement and a decreasing effective retirement age. In most developed countries workers retire remarkably earlier than the full retirement age, even if economic reasons suggest not to. Conducting a large online survey, this paper relates the willingness-to-accept/ willingness-to-pay disparity to the retirement decision and shows that the presentation of the decision problem strongly influences the outcome. The willingness-to-accept late retirement is more than twice as high as the corresponding willingness-to-pay. We also show that this disparity is driven by loss aversion. Using the reduction in German social security benefits for early retirement as a market price also shows that the presentation in a willingness-to-accept frame can induce early retirement. Results are robust when the analysis is repeated with a representative panel survey for Germany (SAVE panel).
Dieser Eintrag ist Teil der Universitätsbibliographie.
Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.
![[img]](https://madoc.bib.uni-mannheim.de/style/images/fileicons/application_pdf.png)
Suche Autoren in