Reform of the statutory retrirement age for woman in Austria

We simulate the increase of the retirement age of women up to 65 beginning 5 years earlier as enacted. The labour supply of 60 till 64 year old women is increasing, as well as the retirement age. In the transition period pension expenditures are decreasing by 0.12 percent of GDP p.a. Longer working lives lead also to unemployment and additional expenditures for the unemployment insurance. Longer working lives lead to higher pension income for women after the transition period by 0.03 percent of GDP p.a. The fiscal effects of a higher retirement age for women depend on the observation period.