The Impact of (In)Stability of Pension System on Retirement Timing: Macro-Level Analysis Based on “Certainty Effect”

Abstract Retirement timing is an issue of great political importance these days. Policy-makers develop various initiatives encouraging workers to postpone retirement beyond the statutory age. This effort brings, however, just minimal outcomes. Although increasing opportunities and abilities work in old age, some countries people tend retire as soon it possible. In economic terms, they make suboptimal (irrational) decisions.