Financial and redistributive impact of reforming the old-age pension system in Belgium

The effects of three reforms of the Belgian old-age pension system were examined on retirement behaviour, government budget and income distribution of the old-age retired. On the basis of a large administrative micro-dataset used to estimate and simulate a discrete-time hazard model we found that reforms of the old-age pension system that penalize early retirement, and in particular penalize early retirement of the rich more than the poor, are not only the ones that enhance the financial sustainability of the system at most but at the same time lead to the strongest decrease of income inequali... Mehr ...