Suppose that, as the ratio of the working population to the retired population continues to fall, voters approve a change in the way Canada Pension Plan benefits are calculated - a way that effectively reduces every retired person's benefits by half

Suppose that, as the ratio of the working population to the retired population continues to fall, voters approve a change in the way Canada Pension Plan benefits are calculated - a way that effectively reduces every retired person's benefits by half. This change affects everyone in the population, no matter what their age or current retirement status, and it is accompanied by a 50 percent reduction in payroll taxes. What would be the labour supply effects on those workers who are very close to the typical age of retirement (62 to 65)? What would be the labour supply effects on those workers just beginning their careers (workers in their 20s, for example)?