Social Security Wealth and Early Retirement in Public Pension Scheme

The main objective of this study is to investigate the decision of workers to opt for early retirement. he study focuses on the public sector pension scheme. The simulation technique is used to alculate the social security benefit at two different ages; compulsory retirement age and early etirement age. Data gained from the simulation process represent two main social security ariables, namely the social security wealth and social security accrual. Then, both variables will be stimated together with other explanatory variables such as marital status, sex, education level, xperience and age using logistic method to examine its relationship with early retirement decision. he results show that the substitution effect of public sector pension scheme is more dominant than ncome effect. The indings of this study concludes; public sector pension scheme fails to encourage ublic workers to settle for early retirement and thus it is not capable of becoming a policy instrument o downsize the public sector work force and unable to create job vacancies