Individuals' decisions about work and retirement depend on the financial incentives embedded in retirement‐income systems. This chapter presents measures of the pension incentive to retire, showing how the retirement income system can act as an implicit tax
or subsidy on remaining in work. The analysis looks at the main retirement "window" in OECD countries, from age 60 to 65. In addition to increases in pensionable ages (set out in Chapter 1), recent pension reforms in most countries have involved
policies to reduce the incentive to retire early and increase the incentive to retire after the normal pension age. However, the incentive to retire early remains strong in a minority of OECD countries. And there are ways in which most countries could further improve their
pension system. The chapter concludes with nine policy conclusions that would reward people for working longer.