Retirement decisions in a discrete choice model and implications for the government budget: the case of Belgium.

"The purpose of this paper was to analyse the determinants of the retirement decision of the elderly in Belgium, and, by making some simulations, to find out what would be the financial implications for the government budget of changes in the social security system.... The largest effect on labor supply is caused by changes in pensionable age. Giving a lump-sum pension to part-time workers seems an interesting policy to withdraw individuals from the labor market at a relatively low cost. Introducing flexible retirement also is beneficial for the government budget and has, especially for women, a relatively large positive effect on labor supply."