Hvordan pavirker AFP uforepensjoneringen? [Has Voluntary Early Retirement (AFP) Affected Disability Retirement?]

Abstract

Norwegian Social Security provides an old age pension for all residents beginning at age 67 and a disability pension before that age for residents in poor health. An occupational early retirement pension (AFP) was introduced in 1989, with the eligibility age gradually reduced to 62 years in 1998. The AFP scheme was expected to substitute for (reduce) disability retirement. The AFP scheme may, however, have changed social expectations for earlier retirement, which could lead to more applications for disability retirement by elderly workers. But which of these effects is stronger? Individual level data for the years 1987-1999 indicate that AFP has not affected disability retirement among men, but may have led to more disability retirement among women.