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Incentives, Health, and Retirement: Evidence From a Finnish Pension Reform

This paper examines the interplay between health and financial incentives to postpone retirement, using exogenous variation generated by a Finnish pension reform implemented in 2005.

09. januar 2026

They find that on average, individuals react to the financial incentives created by the reform as expected. This result holds for most of the health‐related subgroups. However, those with a long period of sickness absence are less likely to respond to changes in the financial incentives to postpone retirement.