Don't Penalize Workers for Retiring Later

The last decade has seen most countries in the rich world raise the retirement age in order to improve the sustainability of their pension systems at a time when people are living longer, healthier lives. The policy is moving in the right direction, but it has one key flaw -- current policies are too rigid.

Retirement should not be a one-size-fits-all system where those who work longer or retire earlier are penalized. Provided they get it right, governments and citizens have much to gain from a more flexible pension system than exists in most countries today.