Incomes of the Early Retired

1982 ◽  
Vol 11 (3) ◽  
pp. 355-363 ◽  
Author(s):  
Rosalind M. Altmann
Keyword(s):  
Early Retirement ◽  
Poor Health ◽  
Retirement Decisions ◽  
Private Support ◽  
Very High

ABSTRACTThis paper examines the incomes of men retiring before age 65, using FES data for years 1970–77. The findings are that such men generally rely on state benefits for most of their income. In particular, it seems that many of the early retired are receiving benefits related to ill-health which suggests that early retirement decisions are attributable more to poor health than to any voluntary desire for increased leisure by those who can afford not to work. It is found that the incomes of the early retired improved over the 1970s relative to average eararnings, but this may be due to a rise in levels of state benefit rather than private sources of income. Incomes of this group have generally been lower than for men over age 65. There is, however, a small number of early retired men with very high incomes and extensive private support, but this is only about ten per cent of the group.

How health affects retirement decisions: three pathways taken by middle-older aged New Zealanders

2009 ◽  
Vol 30 (3) ◽  
pp. 527-545 ◽  
Author(s):  
RACHAEL POND ◽  
CHRISTINE STEPHENS ◽  
FIONA ALPASS
Keyword(s):  
Early Retirement ◽  
Developed Countries ◽  
Health Protection ◽  
Poor Health ◽  
Ageing Population ◽  
Working Lives ◽  
Retirement Decisions ◽  
Health Related ◽  
Justification Bias ◽  
New Zealanders

ABSTRACTConcerns about the economic impact of an ageing population have triggered many developed countries to advance policies that attempt to extend working lives and discourage early retirement. There is considerable evidence of a relationship between poor health and early retirement, but some researchers have suggested that there is a ‘justification bias’ in claims that ill-health is the cause of retirement. This paper reports a longitudinal qualitative study that interviewed 60 New Zealanders aged between 55 and 70 years on two occasions, and analysed their explanations of health-related retirement decisions. Although the participants' explanations included poor health as an important reason for retirement, two additional health-related retirement pathways were identified: the ‘maximisation of life’, being decisions to retire whilst healthy to fulfil other life goals; and ‘health protection’, being decisions motivated by health protection and promotion. These health pathways interacted with other factors such as financial security. An elucidation of these motivations pays particular attention to the social and discursive context of explanations of retirement, and considers the three identified health-retirement pathways in relation to the sickness justification bias and current government policies to extend working lives.

Labour market disadvantage or poor health upon arrival? An examination of the native–immigrant gap in early retirement on a disability pension

2021 ◽  
pp. 000169932110228
Author(s):  
Jeevitha Yogachandiran Qvist ◽  
Hans-Peter Y Qvist
Keyword(s):  
Labour Market ◽  
Disability Pension ◽  
Early Retirement ◽  
Register Data ◽  
Labour Markets ◽  
Poor Health ◽  
Health Differences ◽  
A Minor ◽  
Efficiency And Productivity ◽  
Advanced Capitalist

Non-Western immigrants in Scandinavia have a higher risk of early retirement on a disability pension than natives, but the reasons are unclear. One theory is that increased demands for standardization, efficiency and productivity in advanced capitalist labour markets, such as the Scandinavian market, cause expulsion of the weakest and least qualified individuals from the labour market, including a disproportionate share of non-Western immigrants. Another theory is that non-Western immigrants already have poorer health than natives upon arrival in Scandinavia. This article examines the extent to which the native–immigrant gap in early retirement on a disability pension is explained by non-Western immigrants’ disadvantaged position in the labour market when pre-existing health differences are controlled for. To this end, we draw on Danish register data, including all disability pensions granted in 2003–2012 to natives and non-Western immigrants who arrived in Denmark in 1998. Our results suggest that a minor proportion of the native–immigrant gap in disability pensions is explained by non-Western immigrants’ health upon arrival, whereas the vast majority of the gap is explained by non-Western immigrants’ disadvantaged position in the labour market.

scholarly journals Origins and Mechanisms of Social Influences in Couples: The Case of Retirement Decisions

2019 ◽  
Vol 35 (6) ◽  
pp. 790-806 ◽  
Author(s):  
Maria Eismann ◽  
Kène Henkens ◽  
Matthijs Kalmijn
Keyword(s):  
Older Workers ◽  
Instrumental Variable ◽  
Early Retirement ◽  
Variable Approach ◽  
Partner Influence ◽  
Course Work ◽  
Self Interest ◽  
Retirement Decisions ◽  
Instrumental Variable Approach ◽  
Large Representative

Abstract The interdependence between partners raises considerable interest in the sociology of life course, work, and families. Partner influences play a particularly important role in the work domain, because each partner’s work decisions have profound effects on the couple as a whole. In contrast to previous research, this article pays detailed attention to the role a partner plays in workers’ labour market decisions by analysing the case of early retirement decisions. We hypothesized that partners’ preferences for older workers’ retirement originate from altruism and self-interest. Moreover, we expected that partners influence older workers’ early retirement behaviour via persuasion and pressure. To adequately estimate partners’ and workers’ preferences for the worker’s retirement, we used an instrumental variable approach. This was possible because we collected multi-actor longitudinal data from a large representative sample of older workers and their partners in the Netherlands. The results support that spousal preferences originate in altruism and self-interest and that partners influence workers through persuasion and pressure. Gender differences in origins and mechanisms of partner influence are also discussed.

scholarly journals The payout stage in Chile: who annuitizes and why?

2006 ◽  
Vol 5 (2) ◽  
pp. 121-154 ◽  
Author(s):  
ESTELLE JAMES ◽  
GUILLERMO MARTINEZ ◽  
AUGUSTO IGLESIAS
Keyword(s):  
Adverse Selection ◽  
Early Retirement ◽  
High Rate ◽  
Insurance Companies ◽  
Lump Sum ◽  
Short Run ◽  
The Government ◽  
Very High ◽  
Minimum Pension ◽  
Individual Accounts

In 1981 Chile adopted its new multi-pillar system, which featured privately managed individual accounts. Starting in 1983 payouts from the accounts were permitted and detailed rules about payouts were put in place. The Chilean scheme therefore gives us an opportunity to examine how pensioners and pension providers react when individual accounts replace DB systems, and how detailed regulations shape these reactions.Retirees in Chile have a choice between early versus normal retirement (before or after age 65M/60W) and between annuitization versus programmed withdrawals; lump sum withdrawals are largely ruled out. Almost two-thirds of all retirees have annuitized – a very high proportion compared with other countries. This paper argues that this high rate of annuitization is the result of guarantees and regulations that constrain payout choices, insure retirees through the minimum pension guarantee, eliminate other DB components, and give a competitive advantage to insurance companies selling annuities. The minimum pension financed by the government provides insurance to workers with small accumulations, who retire at the normal age with programmed withdrawals, while those with large accumulations retire early and must purchase annuities to acquire longevity and investment insurance. Insurance companies further induce annuitization by marketing aggressively, facilitating early retirement for those who annuitize and offering a high money's worth ratio for price-indexed annuities. We find evidence of adverse selection based on asymmetric information about short-run health status, but this does not seem to deter the high rate of annuitization.

A Comparative Study of PreRetirement Programs in the Public Sector

1994 ◽  
Vol 23 (4) ◽  
pp. 631-647 ◽  
Author(s):  
Sidney R. Siegel
Keyword(s):  
Public Sector ◽  
Growth Rates ◽  
Career Paths ◽  
Early Retirement ◽  
Employee Rights ◽  
Federal State ◽  
Government Agencies ◽  
The Public ◽  
Depth Analysis ◽  
Retirement Decisions

Preretirement planning programs are joining the expanding list of employee rights in the public sector. Programs are only mandated in slightly more than 25% of government agencies, but at least 52% of them offer programs, with more anticipated shortly. Significant differences exist among federal, state, county and city programs. This longitudinal inter-agency study provides an in-depth analysis of programs for each governmental level then compares and contrasts the findings. References to existing programs within the private sector are made. Program offerings, content, format, eligibility, funding, participation and structure are presented along with anticipated growth rates. Relationships between program availability and early retirement decisions are documented. The use of programs as a strategy to open career paths may backfire and even discourage retirement. Failure of programs to recognize growing diversity in the labor force is explored and recommendations presented for increased innovation and cross agency cooperation.

scholarly journals ADULT LONGEVITY AND GROWTH TAKEOFF

2014 ◽  
Vol 20 (1) ◽  
pp. 165-188 ◽  
Author(s):  
Daishin Yasui
Keyword(s):  
Life Cycle ◽  
Life Expectancy ◽  
Early Retirement ◽  
Overlapping Generations ◽  
Working Life ◽  
Adult Longevity ◽  
Overlapping Generations Model ◽  
Fertility Decisions ◽  
Retirement Decisions ◽  
Positive Effect

This paper develops an overlapping-generations model in which agents make educational and fertility decisions under life-cycle considerations and retirement from work is distinguished from death. Gains in adult longevity induce agents to decrease fertility, invest in education, and achieve higher income in order to save more for retirement. Even if working life is shortened by early retirement, this mechanism works as long as adult longevity increases sufficiently. Our model can explain the positive effect of life expectancy on education without contradicting the fact that working life length has not substantially increased, because of retirement. We also provide new insights into the interaction between fertility and retirement decisions.

Health and Early Retirement Decisions†

1980 ◽  
Vol 28 (1) ◽  
pp. 23-28 ◽  
Author(s):  
Joseph M. Holtzman ◽  
Harry Berman ◽  
Richard Ham
Keyword(s):  
Early Retirement ◽  
Retirement Decisions

scholarly journals Analysis Of Faculty Retirement Intention: Using A Proportional Odds Model

2011 ◽  
Vol 17 (3) ◽  
Author(s):  
Bahman Bahrami ◽  
Jerome W. Stockrahm
Keyword(s):  
Decision Making ◽  
Early Retirement ◽  
National Sample ◽  
Mandatory Retirement ◽  
Retirement Age ◽  
Factors Affecting ◽  
Retirement Incentives ◽  
Retirement Decisions ◽  
Faculty Retirement ◽  
Expected Retirement Age

This paper uses data from a random national sample of faculty, age 50 and older, and explores factors affecting faculty member's retirement decisions for three expected retirement age categories.  The variables such as end of mandatory retirement, age, current salary, expected others sources of income, early retirement incentives, and years of education have a significant effect on faculty retirement decisions.  An understanding of these factors can help decision making for staffing purposes.

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