Macroeconomic Effects of an Earlier Increase in the Retirement Age for Women in Austria

The calculated impact of the increase in women's retirement age up to 65 by 2024 leads to a rise in labour supply and partly to an increase in employment and unemployement. The deferred pension claims reduce pension expenditures by 0.3 percent of GDP p.a. As employment and unemployment will go up, we also expect increasing expenditures of unemployment benefits.