Should retirement age be coupled to life expectancy ?

TL;DR

The paper discusses a strategy of adjusting retirement age in line with life expectancy to maintain stable retiree-to-worker ratios, emphasizing the role of immigration in this balance.

Contribution

It proposes a model linking retirement age adjustments to life expectancy increases, highlighting immigration as a stabilizing factor.

Findings

Retirement-to-workforce ratios can be stabilized by increasing retirement age with life expectancy.

Immigration below 1% per year is necessary for maintaining stable ratios.

Coupling retirement age to life expectancy can mitigate demographic shifts.

Abstract

Increasing every year the retirement age by the same amount as the increase of the life expectancy gives roughly stable ratios of the number of retired to working-age people in industrialized countries. Continuous influx of immigrants, below one percent per year of the total population, is needed for this stabilization.