Who wants (them) to work longer?

This paper examines age-specific individual preferences for the legal retirement age. Based on a theoretical model we develop the hypothesis that retirees prefer a higher legal retirement age than workers, whereby just retired individuals prefer the highest retirement age. We corroborate the hypothesis empirically with a fuzzy regression discontinuity design and show that just retired individuals are indeed most in favor of an increasing retirement age. We conclude that in aging societies the political feasibility of raising the legal retirement age increases. This result is of political relevance especially with regard to the expected retirement wave of the baby boomer generation.

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