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. Author manuscript; available in PMC: 2015 Jul 1.
Published in final edited form as: Scand J Econ. 2014 Mar 10;116(3):838–858. doi: 10.1111/sjoe.12060

Table 3.

Calibrated retirement ages

Cohort birth year Life expectancy at age 20 Wage index at age 20
100 189 334
1901 41.9 65.1 59.3 54.5
1951 49.4 68.1 62.3 57.6
1996 54.3 70.3 64.4 59.5

Notes: Life expectancy at age 20 is based on data and projections from the Berkeley Mortality Database. We assume that each cohort starts working at age 20. Wages in 1921 are indexed to 100. Wages in 1971, and projected wages in 2016, relative to 1921, are based on a long-run rate of wage growth of 1.27 per cent per annum, and are 189 and 334, respectively. The calibrated retirement age is the retirement age predicted by our model for that life expectancy and wage at age 20 with wage growth of 1.27 per cent per annum.