This paper addresses the question to what extent workplace perception affects the subjective well-being of older workers in their jobs. We use several dimensions of workplace perception to estimate their importance for job satisfaction. Our results show that older workers' happiness in the job strongly depends on job rewards, in particular on opportunities to develop new skills, receiving support in difficult situations, and recognition for their work. These dimensions of workplace attributes are merely psychological by nature; in contrast, salary opportunities and socio-demographic dimensions have a weaker impact on job satisfaction, if at all.

The scope of this paper is to investigate the impact of financial incentives on the retirement decision of private sector workers in Austria. How do financial incentives embedded in the Austrian pension system impact individual retirement behavior? We are using a unique dataset of individual social insurance spells. Micro-estimating the impact of financial incentives on the probability of retirement shows that the behavioral response to financial incentives in Austria is relatively large in international comparison. Also, there are striking behavioral differences between men and women. Using the estimates to simulate the response to reform shows that actual retirement ages could be most successfully brought up by a 6 percentage point deduction in pension benefits per year of early retirement.JEL-Codes: C23, C25, H55, J22, J26.

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This paper investigates the pension policies and outcomes of two countries, Austria and Ireland, representing two different welfare models. How do these different systems perform in terms of income adequacy, labour supply incentives for older workers, and actuarial fairness? Although there is no ‘optimal’ design for a pension system, there seems to be a convergence in systems between countries. Countries with established welfare models that have evolved over time need to rethink the basic paradigms of their pension policies for the future. This paper contains specific policy recommendations about pension reform. We highlight the importance of behavioural incentives with respect to raising average retirement ages, and the need for government engagement in providing an adequate retirement income.