Broadening the Definition of 'Retirement Age' in Old Age Security Benefit Distribution

American workers are retiring earlier, living longer, and receiving greater retirement benefits for each year out of the labor force than ever before, which has created serious financial pressures on the nation's Social Security system and generated an intense and often heated debate. This book places retirement in an economic context, calculating the income opportunities facing older workers at alternate retirement ages, and estimating how responsive retirement ages are to changes in income opportunities. It is the first book length study to combine evidence on private pension and Social Security institutions with econometric evidence on the determinants of retirement behavior, providing new empirical results that shed light on current policy issues. Retirement, Pensions, and Social Security reveals the importance of earnings, private pensions, and Social Security benefits compared to health, mandatory retirement, and other noneconomic factors in determining retirement patterns; the amounts of private pension and Social Security benefits that workers would receive at alternate retirement ages; the prospective budget sets facing potential retirees from ages 60 to 68; and variation across pension plans in the gains or losses from deferring retirement. It describes regression models showing that retirement patterns can be explained in part by the retirement income streams available at age 60 and by the gain in retirement income if retirement is postponed to age 65, and multinomial logit and ordered logit models which formulate the retirement decision in a utility-based framework while accounting for unmeasured preferences of individuals and nonlinearities in income opportunities. The book predicts the responsiveness of retirement ages and retirement incomes to reductions in Social Security benefits, using several different prediction methods including a new one published here for the first time. And it explains the differences in average retirement ages among workers in different pension plans in terms of differences in the economic rewards for deferring retirement and differences in workers' taste for income and leisure.

PurposeThis paper aims to measure the financial impact on social security system of a recently proposed indexation mechanism for retirement age by considering the Italian longevity experience. The analysis is motivated by the progressive increase in life expectancy at advanced age, which is rapidly bringing to the fore noticeable socio-economic consequences in most industrialized countries. Among those, the impact on National Social Security systems is particularly relevant if people live longer than expected; this will lead to greater financial exposure for pension providers.Design/methodology/approachReferring to the Italian population for illustrative purposes, the authors contemplate different scenarios for mortality projection methods and for the implementation of pension age shift while accounting for gender and cohort gaps and model risk. Synthetic indicators to measure the impact of the indexation mechanism on social security system are introduced on the basis of pension cash flows.FindingsAn indexation policy that manages gender gap while adjusting retirement age for varying life expectancy is proposed. As a result, sustainability of public retirement expenditure is improved.Originality/valueThe paper is a concise scenario analysis of the reduction of costs and risks that pension providers would have if the system resorted to link retirement age to life expectancy. The ideas fostered by the paper follow a recent proposal of the Authors on a flexible retirement scheme that deals with model risk for mortality projection and accounts for gender gap in mortality rates.

Indonesia's social security system implementation has entered a new stage. Since the implementation of Law No. 40 of 2004 about the National Social Security System and Law No. 24 of 2011 regarding the Social Security Administering Body or “BPJS,” the social security system has also been implemented on a national scale. Social security implementation may rely heavily on customer experience and word of mouth. Participants in BPJamsostek will get personal experience using BPJamsostek services. Satisfaction influences whether or not participants will stay loyal to participants at their productive age and even recommend them to others. Experience determines whether or not participants will remain loyal to them and even recommend them to others. This research intends to examine the impact of customer experience and electronic word-of-mouth on participants' loyalty at the BPJamsostek branch in Medan City, Indonesia, using customer value as an intervening variable. Accidental sampling is used for sampling. The population of this research consisted of claimants for JHT under the age of retirement, with a total of 100 respondents. Using the SmartPLS 3.0 application, PLS-SEM was used for data analysis. The findings indicate that customer experience has a significant and positive impact on customer loyalty. Customer loyalty is positively and significantly affected by electronic word of mouth. Customer value has a significantly positive influence on customer loyalty. Customer experience has a significantly positive impact on customer value. Customer value is positively and significantly affected by electronic word of mouth. Customer value may mediate the link between customer experience and customer loyalty, as well as electronic word of mouth's effect on customer loyalty. Keywords: Customer Experience, Electronic Word of Mouth, Loyalty, Customer Value

Constitutional right to social security

A social security system for workers, especially foreign workers, is also needed as legal protection for foreign workers. The purpose of this research is to find out how the implementation of the social security system that runs at the same time that the social security system acts as legal protection. Researchers in this case look at the applicable laws and government regulations regarding how the national social security system is applied to foreign workers in Indonesia. According to the laws of the social security system administering agency as well as government regulations and regulations of the Ministry of Manpower that foreigners who work for at least 6 months are required to join the Social Security Administration Agency (BPJS) to receive social security provided by the government if there is a risk in work. Foreign workers receive social security such as old age security, work accident insurance and death insurance. Regarding registration for participation in this national social security, mostly if the foreign worker works from an employer other than the state, the employer is obliged to register them and themselves, as well as different contributions that must be paid to BPJS. With this national social security system as legal protection it aims to create justice in work relations, security at work and replacement if there is a risk at work

The extension of life has exerted more and more pressure on the Chinese pension industry. In order to alleviate this pressure, more and more experts and scholars put forward policy recommendations for postponing retirement. At present, the specific reform scheme of the retirement age in China has not yet been introduced, and there are still some disputes on how to carry out the policy of postponing retirement. However, from the perspective of international experience, some countries or regions adjust retirement age directly or indirectly according to the life expectancy of population. This practice is important reference for our country. Whether China should build the adjustment mechanism of life expectancy and retirement age has very high research value. Under this background, this paper investigates the feasibility of establishing the linkage mechanism of life expectancy and retirement age from a perspective of a social planner through mathematical deduction and theoretical research, and further explores the adjustment formula between them. It hopes that this research can enrich and develop the application of overlapping generations model to the pension problem, and give relevant reference to government departments regarding the issue of postponing retirement. This paper, based on two-period overlapping generations model, introduces the retirement factors, and builds a general equilibrium framework in four aspects of individual behavior, enterprise behavior, government behavior and capital market equilibrium under the assumptions of completely competitive market, full employment and government control of the retirement age. With the optimality principle and the comparative static analysis, we find that when the economy is in a stable state, life expectancy with the maximum social welfare is positively related to the retirement age, manifesting a negative inverse proportion function form. Based on this functional relation, we use the parametric estimation method and assignment simulation to solve the adjustment formula of the life expectancy and retirement age of the population, and put forward an adjustment comparison table between them. According to the calculation results and prediction of life expectancy by China Issues National Plan on Population Development（between 2016 to 2030）, we recommend extending the retirement age to 65 years before 2030. In the end, by testing the model, on the premise of keeping the pension balance, we find that if there is no adjustment mechanism between the life expectancy and retirement age, sudden changes in life expectancy will reduce the pension payment, and can lead to the losses of social welfare. Therefore, based on the findings of this paper, and in the context of the extended life expectancy of Chinese population, we suggest that the governments should consider building the adjustment mechanism of life expectancy and retirement age, and increase the retirement age with the extension of life expectancy.

General Background: The regulation of notaries’ retirement age in Indonesia has long been debated for its incompatibility with contemporary professional dynamics and increased life expectancy. Specific Background: Constitutional Court Decision No. 84/PUU-XXII/2024 redefines eligibility for notarial tenure by shifting emphasis from age-based to competency-based assessment. Knowledge Gap: However, the legal implications of this paradigm shift and its impact on professional governance remain insufficiently examined. Aims: This study analyzes the relevance and juridical consequences of the Court’s decision for reformulating Indonesia’s maximum notarial retirement age. Results: Using a normative juridical approach, the findings show that the decision provides a constitutional foundation for extending tenure based on competence, health, and integrity while urging clearer and more objective implementing regulations to reduce legal uncertainty and administrative discrimination. Novelty: The study demonstrates that extending retirement age up to 70 years can strengthen service continuity and the quality of authentic deeds when supported by periodic professional evaluations. Implications: These insights position the Court’s decision as critical momentum for modernizing Indonesia’s notarial system toward more adaptive, equitable, and quality-oriented professional governance. Highlights: The Constitutional Court shifts retirement eligibility from age-based rules to competence-based assessment. Extending the notary retirement age to 70 enhances service continuity and maintains deed quality. Clear, objective implementing regulations are essential to prevent legal uncertainty and discrimination. Keywords: Notary, Retirement Age, Constitutional Court, Professional Competence, Legal Certainty

The Indonesian government expanded social security for the community, especially those who experienced layoffs or lost their jobs by issuing a Government Regulation to expand social security as amended and adding several provisions to articles in Law Number 40 of 2004 concerning the National Social Security System after the enactment of the Law. Law Number 11 of 2020 concerning Job Creation. The background to the policy is because during the COVID-19 pandemic many companies laid off employment. In Jakarta, the number of people who have lost their jobs has increased. The Central Statistics Agency of Indonesia report released that the number of unemployed people in the Special Capital Region of Jakarta in February 2022 was 410.59 thousand people. This research aims to legally analyze the decisions or beschikking issued by the Jakarta provincial government in implementing the job loss guarantee (JKP) program and analyze the implementation of the job loss guarantee program in the Jakarta. The research method used is a juridical-empirical research method using statutory and case approaches. The results of this research: 1) Decree (beschikking) of the DKI Jakarta Provincial Government in implementing the job loss guarantee program by issuing: Regional Regulation Number 27 of 2012 concerning the Implementation of Employment and Governor's Regulation of the Special Capital Region of Jakarta Province Number 15 of 2023 concerning Amendments to Governor's Regulation Number 55 of 2016 concerning the Implementation of Social Security for Workers through the Employment Social Security Administering Agency. 2) Implementation of PP 37/2021 in the DKI Jakarta Province area, based on employment conditions in February 2023, the working population in Jakarta area was recorded at 4.86 million people and a survey of 135 random respondents related to the dissemination of information about JKP concluded that the implementation JKP, especially in terms of socialization, is still lacking, because as many as 77% admitted that they had never been socialized about the JKP program which has implications for respondents' knowledge of the benefits of the JKP program itself, not many respondents fully know that the benefits of the JKP program are in the form of cash benefits. , benefits of access to job information, and benefits of job training. Of the respondents who knew about the benefits of the JKP program, generally they only knew about the cash benefits, while other respondents admitted that they did not know at all about the benefits of the JKP program. This number of respondents is not small, namely 53 respondents or around 55.8%. The benefits of the JKP program that were known to respondents were benefits in the form of cash as much as 32.7%, benefits from access to job market information as much as 14.7% and benefits from job training as much as 17% and the remaining 55.8% of respondents did not know what the benefits of the JKP program were.

The Constitutional Court's judgment in Motor Industry Staff Association addressed whether employers can fairly dismiss employees based on age after they have worked beyond retirement age. The case consolidated two appeals: Landman, concerning an employee dismissed ten months after reaching retirement age and Solidarity, involving six employees dismissed after working past retirement age. The Court produced three divergent judgments. Chief Justice Zondo's first judgment rejected the Waco precedent, holding that age-based dismissals are only fair if made exactly at retirement age. This strict interpretation aimed to protect workers from potential abuse of age-based dismissals. Justice Van Zyl's second judgment applied contractual principles, arguing employers must exercise their right to dismiss within a reasonable time after retirement age. Justice Rogers' third judgment permitted dismissals any time after retirement age with reasonable notice, emphasising workforce renewal and youth employment opportunities. The split decision reflected South Africa's complex socioeconomic context, with 45.5% youth unemployment in late 2024 creating pressure for workforce renewal, while also needing to protect vulnerable older workers, particularly those disadvantaged by apartheid. The judgments also highlighted tensions between textual and purposive approaches to statutory interpretation in constitutional democracy. The Court ultimately dismissed Landman's appeal but upheld Solidarity's with compensation, as their contract specifically allowed work until age 67. The lack of judicial consensus suggests legislative intervention may be needed to establish clearer guidelines for post-retirement dismissals, balancing worker protection with South Africa's pressing needs for youth employment and workplace transformation. The case demonstrates the ongoing challenge courts face in interpreting employment law provisions while promoting constitutional values and addressing practical workplace realities.

Will the Average Retirement Age Continue to Increase?

Labor supply responses to marginal Social Security benefits: Evidence from discontinuities

To provide legal protection for workers who have experienced termination of employment, the government of Indonesia has issued a new policy in the form of Article 46 of Law No. 11 of 2020 concerning the Job Creation Law. This increases the type of protection for social security programs, namely the job loss guarantee program. This paper uses a juridical-normative research method. The results indicate that the legal protection policy for workers affected by termination of employment was not appropriate. Therefore, an amendment was made to Law Number 40 of 2004 concerning the National Social Security System. Specifically, Article 46A of the Job Creation Law states: "Workers or employees who have their activities terminated are entitled to collateral due to loss of profession." Article 46C(2) also states that the Central Authority should pay the professional burnout insurance contributions. In this case, non-professional collateral benefits are not focused on money but on cash, access to actionable market data, and job training. It is not explained in detail what percentage of the total compensation will be obtained by workers affected by termination of employment through this job loss guarantee scheme. This is only stated in Article 46D paragraph (2), "Job loss guarantee will be provided for 6 (six) months of wages."

Health insurance is a type of insurance product that specifically guarantees the cost of health or care ofthe insurance members if they are sick or have an accident. Implementation of social security is a stateobligation mandated by the 1945 Constitution. The issuance of the Social Insurance Management Agency(BPJS) act as the implementer of the National Social Security System act (SJSN) resulted in PT Askestransforming into Social Insurance Management Agency on Health (BPJS Kesehatan). The National SocialSecurity System is organized on the basis of humanitarian principles, principles of benefit, and the principleof social justice for all Indonesians. The National Social Security System aims to provide and guaranteesthe fulfillment of a decent life base for each participant and/or his family member. The National SocialSecurity System is organized on the basis of such principles: mutual cooperation, non-profit, disclosure,prudence, accountability, portability, mandatory membership, trust fund, and the social security fund willbe used entirely for program development and for the interest of participants. Although the preparation andimplementation of the National Social Security System is quite well, but in reality there are still variousimpacts and problems encountered in the operation of BPJS Kesehatan such as lack of socialization, servicefacilities, inappropriate data, and personnel who are still lacking in giving a good services and information.

This paper extends the Diamond overlapping-generations model with pay-as-you-go social security by allowing for variable retirement age and for distortionary taxation of earnings and interest income. The tax rates are shown to depend on whether or not debt policy is available, and on the compensated elasticities of the two key variables: the amount of saving and the age of retirement. The relative tax on earnings, and thus the downward distortion on the age of retirement, is shown to be low if the age of retirement has a high tax elasticity and if, when there is no debt policy, there is underaccumulation (with respect to the modified golden rule).

The Role of Conventional Retirement Age in Retirement Decisions