A higher statutory retirement age implies more disability benefit claims since the population of older workers with a work-limiting health problem is larger. Moreover, since disability benefit claims are paid until the statutory retirement age, beneficiaries claim benefits for longer periods of time. We show that an additional factor contributing to the increasing burden of disability benefit costs is the decreasing remaining work capacity of individuals with work-limiting health problems due to a higher statutory retirement age. That is, a higher statutory retirement age does not imply prolonged periods of labor market participation where individuals on disability benefits fully utilize their remaining work capacity. The ability to respond to work incentives decreases with age.