. Using data from the Health and Retirement Study and the Medical Expenditure Panel Survey, we estimate a dynamic programming … model of retirement that accounts for both saving and uncertain medical expenses. Importantly, we model the two key channels …

effects on the economy. After the recent reform, ‘the way that retirement benefits are calculated' is changed unfavorably for … workers and the minimum age for retirement is increased. In particular, for an agent with 25 years of social security tax … payments, the replacement rate is down from 65 percent to 50 percent. On the other hand, retirement age is up from 60 to 65 …

how social security incentives and particularly their changes over time can explain the retirement decision. We calculate … indicators of benefit entitlement and derive retirement incentive measures. Using micro-estimation techniques, we find that more … generous retirement provision contribute to earlier retirement. Counterfactual reform simulations show strongly incentivizing …