Labor supply and savings responses to increasing the full pension eligibility age in South Korea

We study labor supply and savings responses to an increase in the full pension eligibility age in the context of South Korea. Using a regression discontinuity design, we document the causal effects of the change on several potential margins of adjustment. We find clear evidence of delayed benefit claiming, consistent with studies in other settings. However, we find little to no statistical evidence of changes in labor supply, in contrast with previous literature. We also find no significant changes in savings or spending. These muted responses may be, in part, because the South Korean pension is relatively new and benefit replacement rates are comparatively modest.