The old-age pension household replacement rate in Belgium

The objective of the paper is to examine retirement behaviour Belgian workers in one-earner households who are automatically granted a more generous old-age pension benefits replacement rate, called household rate. Following recommendation Pension Reform Committee, this policy be suppressed for new pensioners, except those receiving minimum pension. We provide an ex-ante impact evaluation such reform on both sustainability and adequacy measures. Specifically, we test whether rate entails work (dis)incentive mechanism promoting (harming) furthermore, analyse role poverty inequality To do so, use survey dataset SHARE discrete time logistic duration model study link between financial incentives created by social security system. Further, microsimulation estimate magnitude assumed find that generates higher through income effect. At same time, simulate various wealth indicators under different scenarios could potentially play important decreasing elderly since with asymmetrical working arrangements often at lowest part equivalized distribution. Overall, despite supposed positive distributional aspects policy, our simulation analysis supports proposal removing