How does the possibility to defer pension payments affect the labour supply of elderly Danish workers?

This chapter investigates the effects of a recent Danish policy reform on the number
of hours worked after age 65. In short, the policy reform involved the option to defer
pension payments and a reduction in the official retirement age from 67 to 65. Using a
quasi-experimental design, we find that the reform has had a small positive impact on
the number of hours worked at age 65. In the longer term (from age 65 to 67) the effect
disappears, probably due to the reduction in the official retirement age causing people
to retire earlier. It is mainly men, the highly educated and people holding advanced
positions that choose to defer their pensions. The results, therefore, indicate that the
reform has mainly improved the situation of an already well-off group.