Pension Incentives and the Retirement Decisions of Couples

42 Pages Posted: 7 Jul 2016

See all articles by Kadir Atalay

Kadir Atalay

The University of Sydney

Garry F. Barrett

University of Sydney

Abstract

Recent reforms to social security in many countries have sought to delay retirement. Given the family context in which retirement decisions are made, social security reforms have potentially important spill-over effects on the participation of spouses. This paper analyses the impact of women's pension incentives on the retirement decision of their husband. The 1993 Age Pension reform in Australia increased the eligibility age for Age Pension benefits for women. This reform caused an increase in participation of men married to women in the affected cohorts. The behavioral responses are due to wealth effects and preferences for shared leisure.

Keywords: retirement, age pension, joint retirement, spousal effect

JEL Classification: D91, I38, J26

Suggested Citation

Atalay, Kadir and Barrett, Garry F., Pension Incentives and the Retirement Decisions of Couples. IZA Discussion Paper No. 10013, Available at SSRN: https://ssrn.com/abstract=2803845

Kadir Atalay (Contact Author)

The University of Sydney ( email )

University of Sydney
Sydney, NSW 2006
Australia

Garry F. Barrett

University of Sydney ( email )

Rm 370 Merewether (H04)
The University of Sydney
Sydney, NSW 2006 2008
Australia

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