The option value approach in MIDAS_BE. Some work in progress. Jean-Charles Wijnandts 1 and Raphaël Desmet 2 and Gijs Dekkers 3 1. University of Liège (student internship at the FPB) 2. Federal Planning Bureau 3. Federal Planning Bureau and Katholieke Universiteit Leuven.
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The option value approach in MIDAS_BE
Some work in progress
Jean-Charles Wijnandts1 and Raphaël Desmet2 and Gijs Dekkers3
1. University of Liège (student internship at the FPB)
2. Federal Planning Bureau
3. Federal Planning Bureau and KatholiekeUniversiteit Leuven
Paper presented at the Ministerodell'Economia e delleFinanze, Rome, February 15th, 2011
* Note the word “approach” here.
The notion of actuarial neutrality involves setting the gains from postponing retirement by just one year against the associated losses
Alignment for people younger than 60
Implicit tax on working longer
Alignment for people between 60 and 64
The general trend is a strong increase of the market withdrawals at age 60 in scenario 2 at the expense of other ages between 61 and 64 years old