Read e-book online Ageing and Employment Policies: Sweden (Ageing and PDF

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By Patrick Anderson

ISBN-10: 9264199969

ISBN-13: 9789264199965

Publication via Anderson, Patrick

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Extra info for Ageing and Employment Policies: Sweden (Ageing and Employment Policies)

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If average life expectancy increases, the coefficient will also increase and annual pensions will decrease. The coefficient is calculated when the cohort has reached the age of 65. 48 mechanism makes the system more sustainable, but at the risk of falling pension entitlements in the future. Whether the balancing mechanism is triggered or not, depends on whether the current liabilities of the system are greater than the calculated assets. The most recent projection made on the activation of the automatic balance mechanism was made in September 2001 (National Social Insurance Board 2002b).

There are three explanations for this. The first and foremost is that, compared to the old system, the average value of pensions will probably be lower in the future. The second reason is that entitlements are based on actuarial calculations, which penalise or favour people that withdraw early or later, respectively. The third reason is that the retirement decision and how pensions can be drawn are much more flexible compared to the old system. e. the ratio of pension entitlements to income from work prior to retiring) are likely to be lower in the new system compared to the old one because entitlements are now based on lifetime earnings, life 8.

The corresponding figures for working men are 55% and 48%, respectively. The lower figures in the older age groups are more likely a result of selection bias, since a significant part of this group has already left the labour market. Although there exists a possibility to work part-time, the approval to reduce working time is entirely the decision of employer. In the age group 45-64, nearly 60% of workers suggest that the opportunity to work part-time at the older ages is limited. One way to investigate whether partial pensions increase the overall labour supply of older workers is to review the changes in employment rates and labour force participation that took place both before and after the public partial pension system was abolished.

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Ageing and Employment Policies: Sweden (Ageing and Employment Policies) by Patrick Anderson

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