Reforming retirement age in DB and DC pension systems in an aging OLG economy with heterogenous agents

Table 1 Net consumption equivalent from extending the retirement age

	Overall welfare		# of losing cohorts		Maximum loss
Reform scenario	DB (%)	Trans. to DC (%)	DB	Trans. to DC	DB (%)	Trans. to DC (%)
Gradual and immediate increase	4.60	5.97	30	36	−0.38	−0.52
Gradual delayed increase	3.29	4.60	24	28	−0.03	−0.07
Rapid delayed increase	4.61	5.44	28	22	−0.14	−0.12

Aggregate welfare effect reported and unweighted sum of cohort welfare effects for the cohorts affected by the reform. Average loss computed only among the losing cohorts