Does Raising the Retirement Age Actually Work?

M01

Retirement-age cohort

GSX:POP-003:M01 · Model specification · Version 1.0

Connected conditional claims

C01GSX:POP-003:C01In the average scenario, raising the comparison retirement age from 60 to 65 produces a cumulative modelled public gain of R213 billion for a one-million-person cohort. Age 70 produces R369 billion and age 75 produces R448 billion. The last five-year step adds R79 billion, about half the gain from moving from 65 to 70.high sensitivity

C02GSX:POP-003:C02Under that same average scenario, the later retirement ages are associated with 0.50 million lost youth job-years at 65, 0.79 million at 70, and 0.85 million at 75.high sensitivity

C03GSX:POP-003:C03For a saver who remains continuously employed, the model's monthly private pension is R17,223 if retirement is at 60, R23,309 at 65, R31,727 at 70, and R43,839 at 75.moderate sensitivity