This study analyses how pension policy reforms that aim at lengthening working careers impact working careers, income distribution, and fiscal sustainability of both the earnings-related pension system and overall public finances. The research focuses on the economic outcomes of increasing the statutory retirement age and establishing a link between the retirement age and life expectancy. Increasing the eligibility ages for old age pensions, part-time pensions and the unemployment pathway to retirement by two years would lengthen the average working careers by about six months. Another reform example increases the statutory retirement age initially by 10 months and in the future by about two thirds of the increase in life expectancy, resulting in an increase of one month per year, if the most recent population projection would come true. The reform also eases the current life expectancy adjustment of pensions, and translates the current high accrual rate from age 63 to an increase for deferred retirement. This reform would lower the pension contribution rate by one and a half percentage points on average and reduce the sustainability gap of public finances by 0,9 percentage points.
