The Optimal Age of Retirement

What’s the best age at which to retire? This question is certainly a current hot topic. David Canning, who co-directs the Pop Center, and David Bloom, head of the Program on the Global Demography of Aging, have developed a new model for predicting the optimal age of retirement and have published their work in The Scandinavian Journal of Economics. Their model predicts continuing declines in the optimal retirement age, despite rising life expectancy, provided the rate of real wage growth remains as high as in the last century.