Protecting People While Enhancing Work Incentives

Supply-side factors are important explanations for the actual retirement decisions of older people. Individual decisions to work depend highly on benefit levels and eligibility criteria in the public pension system and in other social security schemes, but also on tax rules for occupational and individual pension schemes. This chapter analyses the disincentives to continue working that may arise within the Swedish tax and welfare benefits system. However, it is important to bear in mind that the role of the welfare system is to support vulnerable groups and to cover both temporary and permanent losses of labour income...