Publication type
Journal Article
Authors
Publication date
December 15, 2016
Summary:
The UK state pension (which depends only on age) includes an option to defer take up which yields either a subsequent lump sum or higher weekly pension. We analyse the joint decisions on pension deferral and intertemporal labour supply/participation in a lifecycle setting. We show that deferral is purely a financial decision, but the impact of deferral on work decisions depends on preferences, wage rates, non-labour income and initial wealth. To exactly characterize this, we use a quasilinear utility function and provide calibrated simulations. We also discuss the choice between a lump sum or increased weekly pension.
Published in
Applied Economics
Volume and page numbers
Volume: 48 , p.5 -5
DOI
http://dx.doi.org/10.1080/00036846.2016.1184374
ISSN
36846
Subjects
Links
- http://repository.essex.ac.uk/16791/
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