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The effect of negative income shocks on pensioners

This project examines how the activation of the automatic balancing mechanism in the Swedish pension system affects pensioners’ labour market behaviour and well-being. The mechanism was introduced in connection with the 1998 pension reform and links pension payments to the country’s economic wellbeing. As a consequence, when the liabilities exceed the assets in the system, individuals who have already chosen to retire will receive a temporarily reduced pension. This has a direct impact on their income and may push them back to work. In turn, this can affect their health and well-being. The aim of this project is to examine both these questions.


Published by:

Anahid Zakinian

Changed:

10/6/2020