要旨：Assuming that individuals have to hold money for consumption during the earlier years of retirement before the eligibility age for public pensions (i.e., the CIA constraint), we examine the effects of changes in the eligibility age on balanced growth and inflation through adjustments in the portfolio choices of individuals. It is shown that when the inflation rate is sufficiently high, a raise in the eligibility age lowers the rate of balanced growth, increasing the money holdings of individuals and decelerating capital accumulation. When the inflation rate is low, raising the eligibility age does not necessarily lower balanced growth.

Keywords: Eligibility age for public pensions; Social security; Cash-in-advance constraint
JEL Classification: D91; E41; H55