This study discusses the effect of changes in retirement policy on expected retirement behavior of individual people. Using the panel dataset LISS from 2011 to 2019 in a fixed effect regression...Show moreThis study discusses the effect of changes in retirement policy on expected retirement behavior of individual people. Using the panel dataset LISS from 2011 to 2019 in a fixed effect regression model, we see a highly statistically significant positive effect of a change in statutory retirement age on the expected retirement age. For people between 45 and 61 years old, their expected retirement age increases when the statutory retirement age is increased. Looking for heterogenous effect in different subgroups, the effect remains similar, indicating a robust result. Next to a change in the statutory retirement age, having a partner also influences the expected retirement age. Taking into account these factors, if the government wants to increase her financial sustainability, an increase in the statutory retirement age will lead to a decrease in the old-age dependency ratio, and thus achieving the expected resultShow less
