2019 RDRC Meeting: The Effect of Relabeling and Incentives on Retirement: Evidence from a Pension Reform

We examine a reform in Finland which relabeled retirement ages without changing average financial incentives.  We find that relabeling the early retirement age as a “normal” retirement age substantially increased early retirement.  This relabeling effect was large relative to financial incentive effects.  We find significant heterogeneity in responsiveness to the incentive, as well as suggestive evidence that those retiring early due to this relabeling regret their decisions and return to work.