The Social Security "full retirement age" (FRA) is the age at which retirement income benefits are available without reduction for early commencement. Presently, that age is 67 for those born in 1960 or later. This paper is about the unfair and unnecessary threat to reduce Social Security...

El 22 de marzo de 2023 el Gobierno Nacional radicó el Proyecto de Ley ¿Cambio por la Vejez¿, el cual busca reformar el sistema pensional colombiano y presenta un nuevo esquema de protección a la vejez. La propuesta considera un esquema compuesto por cuatro pilares; el solidario, el...

Poor heath, large acute and long-term care medical expenses, and spousal death are significant drivers of impoverishment among retirees. We document these facts and build a rich, overlapping generations model that reproduces them. We use the model to assess the incentive and welfare effects of...

New Jersey has a deep pension-funding crisis. It has made excessively generous pension promises without funding them; simultaneously, it has run up some of the highest debts, lowest credit ratings, highest tax rates, lowest citizen satisfaction rates, and highest out-migration rates of any...

U.S. state pensions are underfunded by trillions of dollars, but their economic burden is unclear. In a model of inefficient taxation, real estate fully reflects the cost of these shortfalls when it is the only form of immobile capital. We study the effect of pension shortfalls on real estate...

Like a number of other states, Oregon has been hampered in its pension reform efforts since 1996 by its state supreme court's embrace of the “California Rule,” a doctrine arising, in Oregon's case, from a misunderstanding of federal Contract Clause precedent. Under the misreading, states...

We study optimal tax policies with human capital investment and retirement savings for present-biased agents. Agents are heterogeneous in their innate ability and make risky education investments which determines their labor productivity. We demonstrate that the optimal distortions vary with...

This paper explores how the Stability and Growth Pact may cope with the future costs of population ageing in the European Union. Clearly, population ageing has forced countries to reform their pension systems, and will continue to do so, both by reducing the generosity of pension arrangements...