World Bank2012-08-132012-08-132000-01https://hdl.handle.net/10986/11444This edition of the Pension Reform Primer examines the global trend in early retirement among rich and poorer countries, the reasons for people retiring early, the burden of early retirement on the pension system, recent policy initiatives to promote employment of older workers, and people's responses to incentives. The paper notes there is a clear relationship between early retirement and incentives in the pension system, a result confirmed by other international studies and by more detailed econometric analysis of individual countries' systems. It finds that retirement depends on many other factors, such as individual health or the level of unemployment. But financial incentives in the tax and pension system have important effects on the retirement deciosion.CC BY 3.0 IGOACCRUALSAGING POPULATIONSANNUITYBENEFIT FORMULACONTRIBUTION RATEDEFINED BENEFIT PLANSDEFINED BENEFIT SCHEMESDEFINED CONTRIBUTIONSDISCOUNT RATEEARLY RETIREMENTEMPLOYMENTEMPLOYMENT OUTLOOKFINANCIAL INCENTIVESGROSS REPLACEMENT RATEINVESTMENT RETURNSJOBSLABOR MARKETLIFE EXPECTANCYLIFETIME EARNINGSMANDATORY RETIREMENTOLDER WORKERSPENSION COSTSPENSION FORMULAPENSION PLANSPENSION REFORMPENSION REFORMSPENSION SCHEMESPENSION SYSTEMPENSION SYSTEMSPENSION WEALTHPENSIONERSPENSIONSPERSISTENT UNEMPLOYMENTPRESENT VALUEPRIVATE PENSIONPRIVATE PENSION SYSTEMSPUBLIC FINANCESREPLACEMENT RATEREPLACEMENT RATESRETIREESRETIREMENTRETIREMENT AGERETIREMENT AGESRETIREMENT DECISIONRETIREMENT INCOMERETIREMENT INCOME SYSTEMSRETIREMENT SAVINGSSAVINGS PLANSSOCIAL POLICYSOCIAL PROTECTIONSOCIAL SECURITYSOCIALIST COUNTRIESTAX RATETAX TREATMENTUNEMPLOYEDUNEMPLOYMENTYOUNGER WORKERSYOUTH UNEMPLOYMENTYOUTH UNEMPLOYMENT RATESWorld Bank10.1596/11444