Intrinsic work motivation and pension reform preferences

Abstract

Although demographic change leaves pay-as-you-go pension systems unsustainable, reforms, such as a higher pension age, are highly unpopular. This contribution looks into the role of intrinsic motivation as a driver for pension reform preferences. Theoretical reasoning suggests that this driver should be relevant as it decreases the subjective costs of a higher pension age. We test this key hypothesis on the basis of the German General Social Survey (ALLBUS). The results are unambiguous: in addition to factors such as age or education, the inclusion of intrinsic work motivation helps improving our prediction of an individual's reform orientation.

On the Political Feasibility of Increasing the Legal Retirement Age

“…Moreover, 2006 was a year with an intense discussion on pension reforms in the public and in parliament. The outcome of this discussion was a gradual increase in the legal retirement age starting in 2007, which will become fully effective in 2029 (Heinemann et al 2013).…”